ECB Lagarde Glasses
  • The past bias of keeping rates sufficiently restrictive is no longer warranted
  • We are close to achieving our target
  • Inflation momentum in services sector has dropped recently
  • Eurozone growth likely to take a hit from fresh US protectionist measures

This just continues the same commentary after their policy meeting last week. With traders already pricing in ~93% of a 25 bps rate cut for January, there is little scope for surprises as the PMI data in the euro area remains weak and ECB policymakers are vindicating said pricing for now.