ECB President Christine Lagarde has decided to play a mystery game with the global economy. Christine Lagarde said that there was no guarantee that the first rate cut would automatically be followed by further cuts.
According to Bloomberg, the mysterious future will begin to become clear in June 2024, when the European Central Bank is expected to take the first step toward lowering its benchmark rate. The interest rate has been hovering at a very impressive 4.5% for the last six months.
While investors and economists have begun to worry, Christine Lagarde explained that the regulator would rely on fresh data. This answer surely added some intrigue to market expectations.
Meanwhile, Bank of Greece Governor Yannis Stournaras seems to have taken the optimists' side, thus encouraging investors. Isabelle Schnabel, a member of the ECB's executive board, generally suggests taking a break and thinking, pointing out that inflation could surprise them at any moment.
