Watch what they do, not what they say.. Although widely expected, the ECB cut rates today for the first time in 5years, supporting the significant overall bond yield declines we’ve seen in June. All 3 rates (Main, Marginal, Deposit facility rate) were lowered by 25bps, and Christine Lagarde repeated her ‘no preset,’ data dependent course on them (the market is pricing in 2 more cuts for the remainder of the year). The tricky part was they also raised Inflation forecasts to 2.5% in '24 Vs. 2.3%…
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