• Policymakers floated the idea of a second cut in July to win over small number who prefer April cut
  • No deal on a compromise was made
  • A 'few' prefer April cut; those are all policymakers from the south of the region
  • A new framework that would narrow 50 bps gap between deposit rate and main refi rate is likely required but policymakers don't want to do it until they're ready to cut because the signal might be seen as dovish

Reuters is out with its latest ECB sources report, which cites three sources. Earlier today, there was some talk of an April cut. Yesterday, Lagarde said "we will know a little more in April but a lot more in June" in a strong hint of the timing.