ECB’s Rehn: European growth outlook is looking somewhat weaker than the US

• We already have plenty of data to make our decision in September
• Disinflation and a weak economy support a Sept cut
• Downtrend in inflation is on track
• We are still seeing strong services inflation
• The disinflationary process has been ongoing since autumn 2022 and it’s still going on
• Asked about 50 bps, says they always have to be open
• Says he doesn’t want to commit to anything, data dependent

He isn’t offering much here, the market is already fully priced for 25 bps.

This article was written by Adam Button at www.forexlive.com.