Post-ECB meeting comments show split on future interest rate cuts – ING

Comments from some ECB members were quite mixed following last week’s monetary policy meeting, notes Francesco Pesole, ING’s currency strategist.

ECB members remain divided on future interest rate cuts

“While Chief Economist Philip Lane said there was a clear path forward for a rate cut, Slovak central bank chief Peter Kazimir perhaps summed up the ECB hawks’ current view by explicitly ruling out another rate cut before December” .

“All this post-meeting noise sounds like a signal that President Christine Lagarde’s attempt to adhere to strict data reliance is difficult to enforce and may not be unanimously accepted by GC members.”

“EUR/USD found good support against the soft USD and moved in line with our recent expectations. We see no serious reason for a correction ahead of tomorrow’s Fed meeting.”

(This story was corrected on 17 September at 09:47 GMT to remove future references to the ZEW survey and its possible effects on the euro, as the survey data had already been published.)