The first interest rate cut in 2 years is approaching. In June the moment of truth
In June the Bce will have more data on the trend of inflation and new estimates which will allow “to evaluate whether it will continue to fall substantially in line with our projections. If it does, it will be a particularly important confirmation” which will allow the Board of Directors “to move on to the phase of reviewing our policies making them less restrictive“.
Thus in a speech in Frankfurt the president of the Bce Christine Lagarde has returned to clearly indicate the expiration of June as the first possible ‘window’ for a first rate cut after the strong cycle of increases implemented from 2022.
But – warned the Lagarde – even in the future “our decisions will have to remain linked to the data” and set “meeting after meeting in response to new incoming information. This implies that, even after the first cut, we cannot commit in advance to a particular rate path”.