ECB Pres. Lagarde: Rates not necessarily on a linear declining path

ECB Pres. Lagarde in a newspaper interview says:

• Rates may not necessarily be on a linear declining path, there might be periods when we hold
• Possible ECB will hold rates for longer than a single meeting.
• Keen to see evolution of labor costs, corporate profits.
• Time dependent guidance on rates not helpful.

The ECB cut rates by 25 basis points but it was considered a hawkish cut as some members felt that the ECB pre-committed, forcing their hand. As a result the expectations for July cut our pretty much off the table.