Inflationary pressures are easing and the eurozone economy is performing better than expected in the first quarter. This is the kind of recipe the ECB can work with when extrapolating results from current data.
A June rate cut is far from a given, but the ECB has insisted that does not mean it will also happen in July. If the eurozone economy had weakened in the first quarter, it would have put additional pressure on the ECB to cut rates as soon as possible. But alas, that’s not the case – at least for now.
As such, the ECB has more flexibility to take its next policy actions. And this is something that Lagarde & co. can definitely be happy.
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