ECB’s Panetta says can gradually reduce rates in line with disinflation process

• Should be ready to respond quickly to any shocks in one direction or the other
• Previous rate hikes will continue to dampen demand, output and inflation for months to come
• Wage growth can also be expected to ease

That all sounds good but it’s not like that they are going to be doing so in July. Even right now, September isn’t a given just yet. It’s highly plausible but very much still a probability, not a certainty.

This article was written by Justin Low at www.forexlive.com.