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Investor expectations for the European Central Bank (ECB) to lower interest rates one or two more times this year are reasonable, according to Governing Council member Klaas Knot. Knot stated that he is satisfied with the current policy stance and market expectations for future rate cuts as long as inflation and economic growth align with projections. While Knot acknowledges the presence of disinflation, he also emphasizes the need for caution due to potential inflation risks. Knot's remarks align with a growing number of policymakers who support the current market expectations for interest rates in 2024. The ECB recently reduced borrowing costs for the first time in response to record inflation, but remains cautious about future steps due to uncertainty surrounding consumer prices. Knot expressed comfort with the progress made, even if inflation exceeds expectations in the coming months, and expects inflation to return to the target of 2% by the end of 2025. He also highlighted the labor market as a significant factor that could impact prices. Knot does not anticipate another rate cut this month and suggests that the next meeting where this possibility will be considered is in September. As long as interest rates remain above 3%, the ECB's policy will continue to be restrictive. Knot also emphasized the importance of governments consolidating public finances, stating that failure to do so would require higher interest rates. [Extracted from the article]

Recent data on inflation and economic expansion support the argument for further interest-rate cuts by the European Central Bank (ECB), according to Governing Council member Yannis Stournaras. Stournaras believes that two more rate cuts this year would be reasonable and consistent with their forecasts. The ECB is currently considering whether inflation in the euro zone is moderating enough to warrant further loosening, and many experts agree that one or two more rate cuts are possible. Stournaras also addressed the political turmoil in France, stating that any new government would likely adhere to European Union fiscal rules. [Extracted from the article]

According to President Christine Lagarde of the European Central Bank (ECB), services inflation does not need to slow to the 2% target for policymakers to determine how much to lower interest rates. Lagarde explained that while goods inflation is currently below 2%, it will be a balance between goods and services. She also noted that wages play a significant role in services inflation and are impacted by the labor system in Europe. This comes as euro-zone inflation moderated slightly in June, with services inflation remaining steady at 4.1%. [Extracted from the article]

The European Central Bank (ECB) is hesitant to cut interest rates further due to uncertainties surrounding inflation threats, according to President Christine Lagarde and Chief Economist Philip Lane. Lagarde stated that the ECB needs more time to gather sufficient data to determine if the risks of above-target inflation have passed. The remarks suggest that borrowing costs will remain unchanged at the upcoming ECB meeting. Lagarde emphasized the importance of being data-dependent and making policy decisions meeting by meeting. [Extracted from the article]

According to a senior International Monetary Fund official, the European Central Bank (ECB) should have crisis tools available, such as its TPI bond-buying program, even if they are not currently needed to help France. The official stated that in a monetary union, it is important to have these instruments in order to deal with stress and ensure policy effectiveness. The ECB created the TPI tool in 2022 to raise interest rates without causing turmoil. The official also mentioned that there have been no disorderly movements in bond markets despite the announcement of France's snap election. Additionally, the official suggested that there is room for further monetary policy easing but warned against premature loosening. [Extracted from the article]

According to Chief Economist Philip Lane, the European Central Bank (ECB) will need more data beyond June to clarify the path of services inflation. Lane, along with President Christine Lagarde, indicated that another interest rate cut in July is unlikely, emphasizing the need for patience in collecting evidence that the ECB is moving towards its 2% target. The ECB is closely monitoring services inflation and wage growth as key drivers of future price developments. Eurostat is expected to release a first estimate for inflation in June, with economists predicting a slowdown to 2.5% from 2.6%. [Extracted from the article]

According to Madis Muller, a member of the European Central Bank's Governing Council, the ECB can potentially lower borrowing costs again before the end of the year, but should exercise caution and not rush to do so. Muller believes that the ECB should be patient and gradually reduce policy restrictiveness, considering factors such as high inflation and strong wage growth. While there is a possibility of underestimating inflation, Muller remains vigilant. He also suggests that the economy will gradually improve due to exports and domestic demand, and that the ECB's policy will likely remain restrictive for some time. [Extracted from the article]

According to Chief Economist Philip Lane, the inflation data for June will not provide answers to the European Central Bank's questions on underlying price pressures. Lane, along with President Christine Lagarde, suggests that another interest rate cut in July is unlikely and emphasizes the need for patience in collecting evidence that the ECB is moving towards its 2% target. The ECB is particularly concerned about services inflation and wage growth as drivers of future price developments. Eurostat is expected to release an estimate for inflation in June later today. [Extracted from the article]

According to Bostjan Vasle, a member of the European Central Bank's Governing Council, the fight against inflation is not yet over, and wage growth remains a significant risk to the price outlook. Vasle emphasized the need for caution and not declaring victory prematurely, stating that interest rates could continue to be lowered this year if everything goes as expected. The ECB has been reducing rates to combat the euro zone's worst-ever inflation, but policymakers are still uncertain about the future of policy due to the uncertainty surrounding the price outlook. Vasle also highlighted the importance of monitoring wage increases and the enduring dichotomy between services inflation and goods inflation. He also mentioned the need for political and financial stability. [Extracted from the article]

European Central Bank Governing Council member Pierre Wunsch stated that he would need strong indications that inflation is moving below 2.5% to 2% in order to support more than two interest rate cuts this year. The ECB recently lowered borrowing costs for the first time since taking the deposit rate to a record high, and there is speculation about how quickly and by how much monetary policy will be loosened. Wunsch believes that one or two more reductions this year is reasonable, but he cautioned against making a second cut at this month's meeting and suggested focusing on meetings with more information. He also mentioned that the moderation in price growth is going in the right direction. Wunsch expressed that he is not currently concerned about the political upheaval in France or the widening of bond spreads, and he stated that there are no grounds for the ECB to activate tools to soothe investors' worries. [Extracted from the article]

According to Gediminas Simkus, a member of the European Central Bank's Governing Council, if the economy develops as expected, it is likely that the ECB will lower borrowing costs twice more in 2024. Simkus believes that the current monetary policy is still restrictive and there is room for maneuver. He also suggests that officials should be prepared to act at any meetings, not just the quarterly gatherings. The article also mentions that the upcoming elections in France are overshadowing the debate on interest rates, and inflation is expected to ease further towards the 2% goal. Simkus does not anticipate any disorderly market developments in French bond yields. [Extracted from the article]

The European Central Bank (ECB) is taking a cautious approach to inflation threats, according to President Christine Lagarde. Lagarde stated that the ECB does not yet have enough evidence to confirm that inflation risks have passed, and that more time is needed to gather sufficient data. This suggests that the ECB may not cut interest rates this month. Lagarde emphasized the importance of being data-dependent and making decisions based on incoming information. The remarks also indicate that the ECB is mindful of the uncertain growth outlook and will not be swayed by any one piece of information. [Extracted from the article]

The European Union is reviving its plan for a Capital Markets Union (CMU) in order to unite its fragmented capital markets and attract private investment. The CMU aims to deepen the EU's single market and promote economic growth. European Central Bank President Christine Lagarde has emphasized the importance of the CMU in protecting Europe's economy from potential disruptions caused by another Trump presidency. The latest reforms focus on improving the architecture of capital flows, funding for businesses, and access to savings and retirement products. While the benefits of the CMU could be significant, it is unlikely to provide an immediate solution to the region's economic challenges. [Extracted from the article]

The European Central Bank (ECB) is facing internal divisions over when to begin lowering interest rates. While most officials agree that rates should be cut this year, there is disagreement over the timing. Some favor a cut in June or later, while others lean towards April or even March. The differing views reflect uncertainty about inflation and the future of the European economy, as well as the impact of monetary easing by other central banks. The outcome of the debate will determine the speed and extent of rate cuts. [Extracted from the article]

The European Central Bank's annual retreat in Portugal is being overshadowed by the political drama surrounding France's snap elections. The conference, which focuses on economic topics, coincides with the ECB's decision to lower interest rates. However, concerns are rising about France's fiscal trajectory and the potential impact on the ECB's actions to calm investors. The outcome of the elections could also affect spending and lead to a clash with Brussels. The ECB is closely monitoring the situation but has not yet activated its Transmission Protection Instrument. [Extracted from the article]

Investor expectations for the European Central Bank (ECB) to lower interest rates twice more this year are considered reasonable by Governing Council member Olli Rehn. Rehn stated that while the ECB must ensure inflation returns to 2%, they should not overly dampen economic activity. Market data suggests two more rate cuts this year, bringing borrowing costs to as low as 2.25% in 2025. Rehn emphasized that the ECB won't pre-commit to any particular path but believes it is rational to expect further reductions if the disinflationary process continues. [Extracted from the article]

European Central Bank (ECB) policymakers, including Governing Council member Fabio Panetta, must be prepared to handle political risks and uncertainty, according to Panetta. He emphasized the need for awareness, flexibility, and state-contingent action plans in the face of high political and geopolitical risks. Panetta's comments come at a sensitive time in Europe, with upcoming National Assembly elections in France potentially leading to policy uncertainty. He also highlighted the importance of central banks being prepared to deal with shocks and using the full range of tools to adjust the monetary stance and protect price stability. [Extracted from the article]

The European Central Bank (ECB) is preparing to conduct its next review of its monetary-policy strategy, which will involve collaboration with the euro zone's 20 national central banks. The review, expected to begin after the ECB's summer break in August, will likely be shorter and more focused than the previous review in 2021. It may include discussions on future drivers of inflation, lessons from recent crises, and other significant implications. The review is timely as the ECB considers how quickly to loosen policy following a series of rate hikes to combat high inflation. [Extracted from the article]

European Central Bank (ECB) policymakers, according to Governing Council member Fabio Panetta, must be prepared to handle political shocks that can occur during times of uncertainty. Panetta emphasized that the inflation and growth projections used by officials are just one of many possible outcomes. He stated that political and geopolitical risks are high and require flexibility and state-contingent action plans. Panetta also mentioned that central banks should be ready to use the full range of tools at their disposal to address any threats to price stability and protect the transmission mechanism of monetary policy. [Extracted from the article]

The rebound in euro-area private-sector business activity unexpectedly lost momentum in June, as the outcome of France's snap election and a slump in manufacturing weighed on the region. The composite Purchasing Managers' Index fell to 50.8, below analysts' predictions of 52.5. President Emmanuel Macron's announcement of snap elections has caused uncertainty about future economic policies, leading many companies to delay investments and orders. The weaker-than-expected figures have increased expectations of interest-rate cuts from the European Central Bank and the Bank of England. [Extracted from the article]

The rebound in euro-area private-sector business activity has slowed down due to the uncertainty surrounding France's snap election and a slump in manufacturing. The composite Purchasing Managers' Index fell to 50.8 in June, lower than analysts' predictions of 52.5. President Emmanuel Macron's decision to call snap elections has created uncertainty about future economic policies, causing companies to hold back on investments and orders. The manufacturing sector remains a challenge, particularly in Germany, while the services sector continues to support the overall expansion of the euro zone. Lower borrowing costs and falling interest rates are expected to boost Europe's rebound, but there are concerns about rising selling prices and manufacturing input costs. The European Central Bank may make further interest rate cuts if inflation moderates. The PMI data is closely watched by markets as an early indicator of economic trends. [Extracted from the article]

Private-sector activity in France unexpectedly slowed in June due to concerns about the upcoming elections and the possibility of a change in government. S&P Global's Purchasing Manager's Index fell to 48.2, below the 50 threshold indicating growth, disappointing analysts who had expected a slight improvement. The manufacturing sector was the main driver of the slowdown, while services remained relatively stable but still in contraction territory. The article also mentions that Germany's manufacturing sector also worsened, with new orders plummeting at a faster rate. The Hamburg Commercial Bank economists warned of risks to services inflation and overall prices due to wage increases in both France and Germany. [Extracted from the article]

Private-sector activity in France unexpectedly slowed in June due to concerns about the upcoming elections. S&P Global's Purchasing Manager's Index fell to 48.2, below the 50 threshold indicating growth, compared to analysts' expectations of a slight improvement. The manufacturing sector was the main driver of the slowdown, while services remained relatively stable. Despite this, France is expected to see a 0.1% expansion in gross domestic product this quarter, with the upcoming Olympics and lower borrowing costs contributing to the economy. [Extracted from the article]

According to Klaas Knot, a member of the European Central Bank's Governing Council, there is a strong case for the ECB to make decisions on interest rates once a quarter when new economic projections are available. Knot emphasized the need for a data-dependent approach due to uncertainty and structural shifts in the global economy. He also mentioned that disinflation is underway in the euro zone, but services prices and wages are still rising at rates inconsistent with the ECB's target. Knot suggested using projection meetings to recalibrate policy and highlighted the importance of flexibility and finding the right balance between policy instruments and forward guidance. [Extracted from the article]

Germany's economy is showing signs of recovery, with the Bundesbank predicting that output will grow in the second quarter. The central bank expects private consumption to pick up and the manufacturing sector to slowly overcome its weak phase. While some recent data suggests a potential slowdown, the Bundesbank forecasts a 0.3% increase in real GDP this year, with growth accelerating in the following years. The Ifo institute also has a positive outlook, raising its growth forecast for this year and predicting a significant improvement in the second half of 2024. [Extracted from the article]

Germany's economy is showing signs of recovery, with the Bundesbank predicting that output will grow in the second quarter. The central bank notes that while there are still challenges, there are also increasing positive developments. Private consumption is expected to pick up, and the manufacturing sector is slowly overcoming its weak phase. However, recent data suggests that momentum may be slowing. The Bundesbank forecasts a 0.3% increase in real GDP for this year, with growth accelerating in the following years. Inflation is expected to fall temporarily before rising again by the end of the year. [Extracted from the article]

The European Central Bank (ECB) has warned that Euro-zone countries need to start reducing their debt immediately due to long-term fiscal risks from aging populations, defense spending, and climate change. The ECB states that these challenges will be faced simultaneously and action needs to be taken, especially in high-debt countries dealing with elevated interest rates. The necessary fiscal adjustment could amount to at least 5% of gross domestic product. The warning comes at a time of concern about the sustainability of public finances in the 20-nation bloc, with France and other European Union nations being reprimanded for running budget shortfalls above the bloc's 3% limit. [Extracted from the article]

The European Central Bank (ECB) has warned that Euro-zone members need to start reducing their debt immediately due to long-term fiscal risks from aging populations, defense spending, and climate change. The ECB states that these challenges will be faced simultaneously and action needs to be taken, especially in high-debt countries dealing with elevated interest rates. The necessary fiscal adjustment could amount to at least 5% of gross domestic product. The ECB also highlights the need for economic policies to gradually reduce public debt and prepare for the future. [Extracted from the article]

Investor confidence in Germany's economy has increased less than expected, raising concerns about the country's recovery. The ZEW institute's expectations gauge rose to 47.5 in June, but fell short of the forecasted 50. The current conditions measure also declined slightly, contradicting predictions of improvement. While Germany's economy has shown signs of expansion, particularly in the manufacturing sector, there is still uncertainty and some economists believe that the moderate recovery may be coming to an end. The Bundesbank forecasts gradual growth in the coming years, but industry data in April suggests a poor start to the second quarter. [Extracted from the article]

European Central Bank President Christine Lagarde has stated that the ECB is closely monitoring financial market developments, following a week of turbulence in France that resulted in a significant drop in market capitalization and widened bond yields. Lagarde emphasized the importance of financial stability alongside price stability. Meanwhile, ECB Chief Economist Philip Lane and Vice President Luis de Guindos expressed a more relaxed attitude towards the recent market turmoil, describing it as a repricing rather than disorderly dynamics. Lane also discussed the ECB's emergency crisis tool, the Transmission Protection Instrument, and reiterated the bank's confidence in bringing consumer-price growth back to the 2% target by the second half of 2025. He suggested that another rate reduction in July is unlikely and that the next significant discussion may occur after the summer break in September. [Extracted from the article]

European Central Bank President Christine Lagarde has stated that officials are closely monitoring financial market developments, following a week of turmoil that saw a significant decline in the market capitalization of French stocks and an increase in the yield on France's bonds. Lagarde emphasized the importance of financial stability alongside price stability and assured reporters that the ECB is attentive to the functioning of financial markets. Lagarde's comments came after ECB Chief Economist Philip Lane expressed confidence in the market turbulence, stating that it was a repricing rather than disorderly market dynamics. Lane also discussed the ECB's emergency crisis tool and reiterated the bank's commitment to bringing consumer-price growth back to the 2% target. [Extracted from the article]

The European Central Bank (ECB) is not overly concerned about recent financial turbulence in France, according to Chief Economist Philip Lane. He stated that the market fluctuations are a repricing and not disorderly dynamics. The market volatility followed President Emmanuel Macron's call for a snap parliamentary vote after his party's defeat in the European elections. Lane also discussed the ECB's emergency crisis tool and reiterated the bank's confidence in bringing consumer-price growth back to the 2% target. He mentioned that the ECB is not precommitting to any particular path for interest rates and suggested that another rate reduction in July is unlikely. [Extracted from the article]

European Central Bank (ECB) officials are not alarmed by the recent market turbulence in France, according to anonymous sources. The turmoil, which has led to a significant increase in the spread between French and German bond yields and a decline in the value of French stocks, has not prompted discussions about crisis tools. The market reaction is not limited to France, as bond spreads in other euro-area countries, such as Italy, have also widened. The ECB would face challenges if the turmoil were to escalate, as the size of the French economy would require unprecedented intervention. The last time the ECB had to resort to emergency measures was in response to rising Italian yields two years ago. French Finance Minister Bruno Le Maire has warned of a potential debt crisis if Marine Le Pen's nationalist party were to win, while Bank of France Governor Francois Villeroy de Galhau has called for the next government to clarify its economic policy quickly. The ECB has experience dealing with turmoil from the previous sovereign debt crisis, but the need for emergency action has become less frequent. The creation of crisis tools, such as the Transmission Protection Instrument (TPI), may provide some reassurance to policymakers. However, recent discussions among investors and analysts have raised doubts about the conditions for activating the TPI. Some experts argue that the ECB may be reluctant to use the instrument if severe fiscal mistakes in France lead to a blowout in yield spreads. ECB Executive Board member Isabel Schnabel has emphasized that the TPI is only used in countries with [Extracted from the article]

The European Central Bank (ECB) is facing increased caution over further interest-rate cuts following the US Federal Reserve's decision to reduce its own easing plans. The ECB is concerned that additional rate cuts could lead to inflation through a weaker currency. While ECB officials stress their independence from the US, they acknowledge the influence of the world's largest economy on global monetary policy. The recent uptick in euro-zone inflation and tight labor markets on both sides of the Atlantic also contribute to the ECB's wariness. [Extracted from the article]

The European Central Bank (ECB) is facing uncertainty in its decision-making due to volatile inflation and an unpredictable economic outlook, according to Vice President Luis de Guindos. Guindos stated that while the direction of monetary policy is clear, there is no predetermined path for borrowing costs over the next six months. The withdrawal of government measures and external shocks could further impact the euro-zone economy. The ECB recently lowered borrowing costs but did not provide clear guidance on future rates. Some policymakers believe additional rate cuts are possible, but caution is necessary to ensure inflation remains low. The ECB remains optimistic that inflation will continue to decrease and eventually reach their target. [Extracted from the article]

According to Joachim Nagel, a member of the European Central Bank Governing Council, the euro zone's core inflation remains stubborn. Nagel stated that the ECB will not automatically lower borrowing costs, but will assess conditions at each meeting. While the ECB recently eased policy, Nagel emphasized that the last mile of the process is the most complicated. He also cautioned against overconfidence and complacency in fighting inflation. Nagel acknowledged the potential impact of US policy on the euro zone but emphasized that the ECB focuses on the eurosystem. [Extracted from the article]

The European Central Bank's Chief Economist, Philip Lane, has stated that if progress is made towards the bank's 2% inflation target, further interest rate cuts could be implemented. Lane emphasized that the decision to lower rates would be contingent on seeing progress, and if progress is not observed, the bank would proceed more cautiously. While some officials have expressed caution about future rate cuts, others believe there is room for further reductions. Lane also highlighted the need for tight monetary policy in the face of elevated wage growth. [Extracted from the article]

The European Central Bank's Chief Economist, Philip Lane, has emphasized the need for the bank to ensure that inflation returns to its target level. He stated that wage growth is still high due to past inflation, and while it is expected to slow down in 2025, interest rates should remain high in the meantime. The recent rate cut by the ECB has sparked debate about the justification for the reduction and the future of monetary policy. While some officials believe that further loosening may not be necessary, others argue that there is room to lower rates. Lane emphasized that the bank will continue to assess the appropriate level and duration of restriction on a meeting-by-meeting basis. [Extracted from the article]

European Central Bank (ECB) President Christine Lagarde has stated that the recent cut in borrowing costs does not mean that interest rates will continue to decline in a linear fashion. Lagarde emphasized that the trajectory of euro-zone borrowing costs is not predetermined and will be reassessed at each step. The ECB's decision to reduce rates last week was unexpected given higher inflation projections and stronger wage growth and consumer prices. Lagarde acknowledged that some recent economic indicators could have been better, but the ECB believed that disinflation was sufficiently advanced to warrant the rate cut. However, other officials have urged caution and dampened expectations for further rapid cuts. Lagarde highlighted wages, unit profits, and productivity as important drivers of services inflation, which is considered a weak spot. She also expressed optimism about the growth outlook and the strengthening of the economy. Lagarde explained that the ECB's policy statement did not refer to reducing the current level of monetary-policy restriction because the removal of the easing bias was intended to be data-dependent and to reflect a real understanding of the path towards reaching the 2% inflation target. Lagarde stated that the natural interest rate is likely to be higher than before the pandemic, but it is currently far away from that level, so discussing it now would be pointless. [Extracted from the article]

European Central Bank (ECB) officials are expressing caution about further interest-rate cuts due to increasing wage pressures. Some officials even suggest that another rate cut may not happen at all. The ECB's decision to lower rates has left them in a tentative and hesitant mood about their next steps. Data shows accelerating wage increases, which is a key factor in their decision-making process. Traders have adjusted their expectations for rate cuts from the ECB, with fewer cuts predicted for the remainder of the year. Overall, there is uncertainty among ECB officials about the future direction of monetary policy. [Extracted from the article]

European Central Bank (ECB) officials are expressing caution about further interest-rate cuts due to increasing wage pressures. Some officials even suggest that another rate cut may not happen at all. The ECB's decision to lower rates has left them uncertain about their next steps, and the recent data showing accelerating wage increases has added to their hesitancy. While some officials believe that the disinflation process is working, others caution that victory is not yet guaranteed. Traders have adjusted their expectations for rate cuts, with fewer cuts predicted for the remainder of the year. [Extracted from the article]

European Central Bank President Christine Lagarde has stated that the fight against inflation is not yet over, despite the recent lowering of borrowing costs. Lagarde emphasized the need for interest rates to remain restrictive in order to ensure lasting price stability. The ECB recently cut its deposit rate by 25 basis points, but investors are uncertain about the future direction of policy. Inflation in the eurozone has exceeded expectations, particularly in services prices, and wage growth has also accelerated. Lagarde stated that future policy decisions will depend on factors such as the return of inflation to target and the effectiveness of monetary policy in controlling inflation. [Extracted from the article]

European Central Bank (ECB) officials have expressed caution about the possibility of further interest-rate cuts, with some suggesting that another cut may not happen at all. The ECB's decision to lower rates has left policymakers uncertain about their next steps, particularly after ECB President Christine Lagarde revealed that inflation would take longer to reach the target of 2%. While some officials believe that the disinflation process is working, others caution that victory is not yet assured. The ECB will continue to make data-dependent decisions and maintain optionality in order to steer inflation to its targeted level. [Extracted from the article]

According to Executive Board member Isabel Schnabel, the European Central Bank (ECB) is facing uncertainty regarding the consumer-price outlook and needs to be cautious about borrowing costs. Schnabel stated that due to the uncertain future inflation outlook, the ECB cannot pre-commit to a specific rate path. She also mentioned that inflation expectations in the euro area have returned to the target of 2%, which led to the decision to lower interest rates by 25 basis points. However, the ECB's recent decision to cut borrowing costs has left investors uncertain about the future direction of policy. [Extracted from the article]

European Central Bank (ECB) officials are cautious about the possibility of further interest-rate cuts, as they want more evidence of progress on inflation before taking any action. The recent decision to lower rates has left the ECB in a tentative and hesitant mood about further action. While some officials oppose the rate reduction, others believe that the ECB should wait and assess the data before making any decisions. The ECB is already excluding a second rate cut in July, and there are doubts about whether a cut in September would be wise. [Extracted from the article]

The Bundesbank, Germany's central bank, predicts that the German economy will gradually gain momentum in the coming years. It forecasts a 0.3% increase in real gross domestic product (GDP) for 2024, slightly lower than its previous forecast of 0.4%. However, output growth is expected to accelerate, with a projected expansion of 1.1% in 2025 and 1.4% in 2026. The Bundesbank attributes this positive outlook to factors such as strong wage growth, declining inflation, and a stable labor market. While Germany's manufacturing sector has faced challenges, the labor market has remained resilient, with a consistent unemployment rate of 5.9%. The Bundesbank expects private consumption to gradually improve and export business to strengthen in the second half of the year, leading to a recovery in the industry. In terms of inflation, the Bundesbank slightly raised its forecast for this year, with consumer-price growth projected at 2.8%. However, it anticipates a decline in core inflation, which excludes volatile elements, in the following years. The Bundesbank's president, Joachim Nagel, emphasized that the inflation rate is decreasing at a subdued pace and stated that the European Central Bank (ECB) is not on autopilot regarding interest-rate cuts. The ECB recently cut rates but also indicated that it will take longer for inflation to reach its target of 2%. [Extracted from the article]

German industrial production unexpectedly declined for the second consecutive month in April, indicating a weak start to the quarter for the country's economy. The 0.1% decrease follows a 0.4% drop in the previous month, contrary to analysts' expectations of an increase. However, there are signs of gradual improvement, with private-sector activity growing at the fastest pace in a year in May and the Bundesbank predicting a slight rise in economic output for the second quarter. The recovery may also be supported by lower interest rates, as the European Central Bank recently cut borrowing costs. [Extracted from the article]

European Central Bank (ECB) officials are unlikely to implement a second interest-rate cut in July, and there is uncertainty about whether a cut would be wise in September, according to anonymous sources. The discussion on Thursday did not seriously consider a reduction next month, and there is no consensus on decreasing rates in September. The lack of a clear path forward suggests disarray within the Governing Council, especially after raising inflation projections for this year and next. Austrian central-bank Governor Robert Holzmann opposed the decision, possibly due to higher-than-expected inflation data. ECB President Christine Lagarde emphasized that rate decisions will be data-dependent and made on a meeting-by-meeting basis. [Extracted from the article]

The European Central Bank (ECB) has implemented a quarter-point reduction in the key deposit rate, moving away from a record high. However, the ECB did not provide any indication that further rate cuts may follow. The decision to lower rates was unanimous, except for one governor. The ECB's move is seen as a step towards loosening monetary policy and potentially stimulating the economy. While recent data has pointed to enduring price pressures, the ECB's President, Christine Lagarde, stated that inflation is expected to slow towards the target of 2% over the second half of next year. [Extracted from the article]

The European Central Bank (ECB) has announced a quarter-point reduction in the key deposit rate to 3.75%, signaling a move away from record-high rates. However, the ECB did not provide any indication of further rate cuts in the future. The decision is seen as a step towards reversing the series of rate hikes implemented to combat high inflation in the euro zone. While recent data has shown enduring price pressures, investors and economists have lowered their expectations for rate cuts in 2024. The next rate cut is expected to take place in September. [Extracted from the article]