ECB Kazakhs: it is very likely that June will be the moment when we will start lowering rates

• The data-driven approach has proven to be suitable so far
• Forward guidance is still not a good policy solution given the high uncertainty
• The baseline scenario is that we gradually move closer to the 2% inflation target.
• This means we can start reducing rates
• But the process must be gradual and we must not rush it.

This is a continuation of comments from the ECB since last week, reaffirming that June will be the first step.

This article was written by Justin Low at www.forexlive.com.

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