Reported 5 months ago
The European Central Bank is likely to lower borrowing costs at its next meeting, as indicated by Bundesbank President Joachim Nagel at the Group of Seven finance ministers and central bank chiefs meeting in Stresa. Nagel mentioned that if the current situation remains unchanged, the probability of a rate cut in June increases. While a reduction in June has been broadly anticipated, ECB policymakers have not been specific about subsequent moves. Nagel did not provide details on the size of the potential rate cut, but ECB Vice President Luis de Guindos previously suggested a quarter-point decrease. Nagel's comments followed a report showing that euro-area wages did not slow down at the beginning of 2024, with Nagel expressing optimism about medium-term wage growth.
Source: YAHOO