- We need to start rate cuts soon
- Should not exaggerate the risk of a wage-price spiral
- Does not buy the argument that the ECB cannot cut rates before the Fed
- Four rate cuts in 2024 seem reasonable
- We have to cut rates twice before the summer break
All the signs are all pointing to the first move being in June and the above remarks reaffirm that. The ECB will break for the summer after the July meeting. So, Stournaras' argument of two rate cuts before that means one in June and one more in July. After which, the central bank will only next meet in September.
