ECB's Patsalides: A bigger rate cut is unwarranted now ...Middle East

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ECBs Patsalides: A bigger rate cut is unwarranted now
Optionality remains essential.Inflation undershoot would only be temporary.

A bigger rate cut would certainly see European long term yields surging as it would be seen as a mistake in the current context. He's taking a more neutral view on rates here and he's not worried of undershooting the inflation target. He's likely for a cut in June and then pause for longer.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

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