Next ECB rate cut sooner than the markets expect
MARKET VOICE
Allan Saunderson looks at the changing signals coming from the European Central Bank
We are looking for a further 25 basis point cut by the ECB to happen probably during one of the July council meetings, and in all a further 50bp cut by the end of the year. This is against the market consensus.
One of the conclusions that the ECB now – if slightly grudgingly – concedes in its May bulletin, is that its method of deriving M3 and its related calculations need to be adjusted. Much will depend on April
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