Please download PDF to read the full content.

ECB prepares the ground for a rate cut in June

• The ECB left the policy rate unchanged for the 4th consecutive meeting.
• Downward revisions to ECB staff forecasts display more confidence that inflation will fall back to target in the coming years.
• The ECB is not yet ready to cut rates at the next meeting in April but is setting the stage for a first rate cut in June.
• Recently market participants have become more aligned with ECB policy guidance helping to limit the market reaction to today’s policy update.