- Trade tariffs likely to provoke a response
- And a 25 bps rate cut in December is the right response
- We should cut every meeting until rates reach 2%
- The neutral rate on average is about 2%
- It's too soon to say if ECB needs to go below neutral
He's definitely more dovish than Villeroy, who commented earlier here. In any case, traders have already fully priced in a 25 bps rate cut for a while now. The question before this was whether or not we'll see the ECB move by 50 bps but those odds look to be getting slimmer day by day.