On April 16, Henry Cook, head of European economic research at Mitsubishi UFJ, said in a report that the ECB's statement at Thursday's meeting may contain a "dovish adjustment" that may highlight the risks to eurozone growth. Thursday's rate cut looks like a straightforward decision, and it's likely to be the same in June. However, given the high level of uncertainty about trade policy and the timing of new fiscal stimulus, the ECB is unlikely to send many new policy signals. In the absence of a clearer shift in the hard data for the Eurozone economy, policymakers may want to maintain a great deal of flexibility. The ECB is expected to cut interest rates three more times this year, bringing the deposit rate to 1.75%.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
MUFG: The ECB will highlight the risks to economic growth and is unlikely to send a new signal
On April 16, Henry Cook, head of European economic research at Mitsubishi UFJ, said in a report that the ECB's statement at Thursday's meeting may contain a "dovish adjustment" that may highlight the risks to eurozone growth. Thursday's rate cut looks like a straightforward decision, and it's likely to be the same in June. However, given the high level of uncertainty about trade policy and the timing of new fiscal stimulus, the ECB is unlikely to send many new policy signals. In the absence of a clearer shift in the hard data for the Eurozone economy, policymakers may want to maintain a great deal of flexibility. The ECB is expected to cut interest rates three more times this year, bringing the deposit rate to 1.75%.