Mid-term inflation outlook too uncertain to say whether we need a June cut.ECB projections likely to show lower inflation this year and the next, but longer term is uncertain.
I personally think the ECB shouldn’t cut in June and pause now to see how things evolve. There’s a scenario where they might have already over-eased and could struggle to bring inflation sustainably back to target.
This article was written by Giuseppe Dellamotta at www.forexlive.com.