Good morning Will there be a first interest rate cut in June? The yen is weakening after a volatile week and a real estate crisis threatens to slow the developed world. Here's what people are talking about.
It looks like we are getting closer to a rate cut by the European Central Bank in June. Chief economist Philip Lane said in an interview with Spanish newspaper El Confidencial that recent euro area data made him more confident that inflation would return to the 2 percent target. “Both the April flash estimate for euro area inflation and the published first quarter GDP figures strengthen my confidence that inflation should return to target in time,” he was quoted as saying. Investors looking to assess the direction of interest rates are awaiting Eurozone producer prices as well as a range of services PMI data. In Britain, the Bank of England could give a clearer signal this week about whether it plans to cut interest rates this summer, as investors bet on a delayed prospect of easing.
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