(Finance) – Generali Investments provides that the first rate cut of interest by the European Central Bank (ECB) only in the month of June.
“Following the overall favorable inflation data, the markets have started to hypothesize cuts in the ECB’s reference rates starting from the second quarter – he commented Martin Wolburg, senior economist by Generali Investments – Recent comments from members of the Governing Council have been more heterogeneous and President Lagarde has once again underlined theimportance of salary agreements collectives this year”.
“The latest major deals in France, Spain and the Netherlands were quite high and hardly alleviated concerns about medium-term inflation,” he added. “Therefore, in meeting on Thursday we expect the ECB to adopt a wait-and-see attitude, once again underlining the dependency on data. We continue to expect a first rate cut only in June and we believe that what will emerge during the press conference will be consistent with this estimate.”