European Central Bank (ECB) Governing Council member Boštjan Vasle, Governor of Banka Slovenije, has joined many of his colleagues in pushing back against market expectations of imminent rate cuts.
Said that those in the market looking for rate cuts soon as springtime are getting ahead of themselves
Vasle was speaking at Euromoney conference in Vienna, reports on his remarks came via Bloomberg overnight (gated).
- “For me, personally, it’s absolutely premature to expect the first cuts at the beginning of the second quarter.” Inflation must be headed back to the 2% target “to be able to change the course of what we are doing,”
- a lot of volatility in inflation ... and that’s why we are very careful with what we are expecting
- says labor markets are still very strong, the ECB needs to be careful on the pass thought of wages inflation
- ECB needs to see fiscal policy supporting lower inflation
