The European Central Bank should not rush to cut interest rates before June as officials need more data to make sure inflation is stabilising. writes about this Bloomberg Citing the opinion of ECB Governing Council member Peter Casimir.
“It is unwise and unprofitable to rush. An early step risks damaging confidence in the ECB,” warned the head of the Slovak National Bank.
According to him, confidence in the slowdown in inflation will reach the required threshold only when a new forecast emerges in June.
Casimir advocates “a smooth and consistent cycle of policy easing”. Most European Central Bank officials agree that the starting point for rate cuts is June, as they consider key wage data expected in the coming weeks.
Drawing attention to factors such as wages, energy prices, fiscal policy and green transition, Casimir warned, “The risks of accelerating inflation are still high.”
Previously president of the ECB guess Reducing inflation to target level.
Previously ECB staff appreciated Lagarde’s work is negative.