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"During our March meeting, markets anticipated a decline in interest rates in the upcoming months, potentially dropping below 2%,” he stated. “Since then, this outlook has not only been validated, but significant new factors have arisen that bolster the argument for ongoing rate reductions.”
Specifically, he highlighted decreasing energy costs, a more robust euro, increasing real interest rates, and the potential for heightened tensions in trade relations with the US.
“Considering the evidence at hand, the inflation goal might be achieved earlier than our most recent forecasts indicate,” Cipollone stated. “We will receive new data before the upcoming meeting. If our assumptions prove accurate, I believe there is potential for additional monetary easing.”
In March, the ECB reduced all three main interest rates by 25 basis points. The upcoming meeting is scheduled for April 17.
source: ft.com
Specifically, he highlighted decreasing energy costs, a more robust euro, increasing real interest rates, and the potential for heightened tensions in trade relations with the US.
“Considering the evidence at hand, the inflation goal might be achieved earlier than our most recent forecasts indicate,” Cipollone stated. “We will receive new data before the upcoming meeting. If our assumptions prove accurate, I believe there is potential for additional monetary easing.”
In March, the ECB reduced all three main interest rates by 25 basis points. The upcoming meeting is scheduled for April 17.
source: ft.com