Lagarde spoke on Monday, expressing confidence on dropping inflation and that the Bank would not wait until the target is hit before cutting again.
The Wall Street Journal (gated) gather together a few analysts now locking in an October 17 rate cut:
- “Anything other than an October cut will now be difficult to justify,” said Jussi Hiljanen, chief strategist for euro and dollar rates at SEB Research.
- “The time for gradualism is over: today’s eurozone inflation release paves the way for another ECB rate cut this month,” Natasha May, global market analyst at J.P.Morgan Asset Management said in a note.
EUR/USD dropped on Tuesday, copping it not only from ECB cut expectations but a firming dollar on geo-political strife:
