Central Banks
ECB Officials Converge Around June to Start Cutting Rates
- Lagarde describes prospect of summer move as ‘likely’
- Markets continue to bet on reductions starting earlier
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European Central Bank officials who until recently had been wary of even discussing interest-rate cuts now look increasingly open to commencing them in June.
Speaking this week in Davos, President Christine Lagarde and several of her colleagues dismissed investor bets on reductions before then. But they signaled the chance of a move around mid-year, when they’ll know more about inflation, wages and the stuttering economy, as well as the harm to supply chains by Yemen’s Houthi rebels.