European Central Bank (ECB) Governing Council member Gediminas Šimkus said on Friday that “Eurozone inflation depends on EU retaliation to the US.”
Further comments
- Geopolitics since the starts of the year is bad news for the economy.
- There is downward pressure on inflation.
- Need to watch for China goods rerouting to Europe.
- ECB June projections may be a little bit worse.
- June ECB cut is needed.
- There is no central scenario for ECB rates.
- It’s unclear if a post-June cut will be in July or September.
- We are more or less there on inflation.
- Quite high chances we’ll be undershooting on inflation.
Market reaction
EUR/USD was last seen trading at 1.1246, up 0.16% on the day.
