Central Banks

ECB’s Lagarde Says Wage Data Are ‘Critically Important’

  • Policymakers have been sending mixed signals on rate cuts
  • Markets are fully pricing a quarter-point reduction in April

Christine Lagarde

Photographer: Ben Kilb/Bloomberg
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European Central Bank President Christine Lagarde declined to give a timeline for interest-rate cuts but emphasized that wage data will be vital in deciding when to begin monetary easing.

The comments suggest a first reduction in borrowing costs will only be feasible toward mid-2024 — later than the April meeting that markets are fully pricing.