- I’m not pleading for a pause in April
- But we must not "sleepwalk" to cutting rates to 2% without thinking about it
- If the data justify a rate cut, we will cut
- If it doesn't, then we might have to pause
- I think the risks on the downside and upside for inflation are relatively limited
- Inflation in Europe might be the boring part of this year; and it's not going to be a boring year
- ECB is tasked with fine-tuning policy around a soft landing now
- Full transcript
All that being said, he reaffirms the existing market path as he says he is "relatively comfortable" with expectation for rates to move to 2% by year-end. He does provide a bit of a buffer to that though, expecting said pricing but "give or take 50 bps".
