Good morning At the end of the week, the ECB moves closer to cutting interest rates, energy markets in Russia and the Middle East are tight and Indian bankers are happy about rising salaries. Here's what everyone's talking about this morning.
The European Central Bank aims to cut interest rates while the Federal Reserve's timetable extends. Up to five Governing Council members appeared to have taken longer than some of their colleagues to be persuaded to keep interest rates stable at Thursday's monetary policy meeting, people familiar with the matter said. A larger group initially favored lowering borrowing costs, but some quickly joined the majority and instead chose June as the right time for easing. Nevertheless, a consensus seems to be emerging that the first phase of the ECB cutting cycle will reduce the deposit rate by around 100 basis points from its current level of 4%. Only the time frame is unclear. The Fed's Susan Collins underscored the divergence with the U.S. when she said recent data had allayed concerns about an “immediate need” for a rate hike. She still expects the cuts to begin this year.
Comments are closed.