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Nagel (ECB): June rate cut is not necessarily followed by a series of rate cuts

  • Services inflation remains high, driven by continued strong wage growth
  • Not entirely convinced that inflation will actually return to target in a timely and sustainable manner
  • Given the uncertainty, we cannot commit in advance to a particular rate path.

This week’s PMI data at least helps in that argument. But for now, one in June is a done deal.

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

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