ECB Pres. Lagarde speaking on CNBC

ECB Pres. Lagarde speaking on CNBC says:

  • We will cut rates soon, barring any major surprises.
  • Geopolitical events impact on commodity prices not very significant so far.
  • We are observing a disinflationary process that is moving according to our expectations.
  • Subject to no development of additional shock, it will be time to moderate restrictive monetary policy in reasonably short order
  • We are not pre-committing to a path of rate cuts
  • There is still huge uncertainty out there.
  • ECB must be cautious and must look at the data to confirm our perspective.
  • Declines to comment on market pricing for three rate cuts in 2024.
  • We believe that rates are restrictive enough and they are producing an effect on inflation.
  • April and May will be a key confidence on inflation.
  • The path to 2% inflation will be bumpy. The rate decline is not linear.
  • We expect inflation to fluctuate around the line that is currently going lower.
  • What is most different between the US and EU is the behavior of the consumer
  • EU consumers are very cautious and continue to save.
  • The American consumer consumes and the level of savings is less than EU.
  • Fiscal policy was significantly higher in the US and targeted toward the consumers.
  • We are data dependent, we are not Fed dependent.
  • We have to attentive to exchange rates and the value of the currency.
  • Lagarde refuses to comment on whether the EURUSD goes to parity is a good thing or a bad thing.
  • We will be single-mindedly be focused of price stability and 2% target.

The interview is over... The EURUSD moved down to the midpoint of the day's trading range at 1.0627, but has found support buyers near that midpoint level. The high for the day reach 1.0653. The low was at 1.06016.