(Bloomberg) -- President Christine Lagarde said the European Central Bank’s next interest-rate meeting is “wide open” — hinting that another cut is possible ...
-- President Christine Lagarde said the European Central Bank ’s next interest-rate meeting is “wide open” — hinting that another cut is possible as officials will have significantly more information on inflation by then.“The question of September and what we do in September is wide open and will be determined on the basis of all the data that we will be receiving,” Lagarde said Thursday after the ECB kept its deposit rate at 3.75%.
By then, they’ll have fresh economic forecasts and two more inflation readings, as well as figures on wages, profits and productivity. There may also be more clarity on the Federal Reserve’s intentions, with markets anticipating that US monetary easing will kick off the week after the ECB’s September meeting.For now, the ECB said consumer prices are behaving more or less as foreseen in its last round of quarterly projections, in June.
The ECB said “profits contracted in the first quarter, helping to offset the inflationary effects of higher unit labor costs” — a trend it sees continuing in the near term. It attributed some of the persistent underlying price pressures last month to “one-off factors.”“We think the ECB will then remain on a quarterly pace for rate cuts with the following move coming in December.
--With assistance from Marilen Martin, Christoph Rauwald, Celine Imensek, Alessandra Migliaccio, Chiara Albanese, Jennifer Duggan, William Horobin, Bastian Benrath-Wright and Constantine Courcoulas.
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