ECB's Nagel offers warning to traders betting on impending rate cuts
In his words:"I would say to everyone who is speculating on an imminent interest rate cut: Be careful, some people have already miscalculated that. We must initially remain at the current interest rate plateau so that monetary policy can fully develop its inflation-dampening effect."But he did mention that rates have very likely peaked already though. In any case, it's not like markets are listening all too much. The odds of a March rate cut next year are at ~45% currently with 36 bps of cuts priced in for April. This article was written by Justin Low at www.forexlive.com.
In his words:
"I would say to everyone who is speculating on an imminent interest rate cut: Be careful, some people have already miscalculated that. We must initially remain at the current interest rate plateau so that monetary policy can fully develop its inflation-dampening effect."
But he did mention that rates have very likely peaked already though. In any case, it's not like markets are listening all too much. The odds of a March rate cut next year are at ~45% currently with 36 bps of cuts priced in for April. This article was written by Justin Low at www.forexlive.com.
