ICYMI – the ECB cut rates by 25bp and leaves the future path unclear

The full chronology of events from the European Central Bank is below, ICYMI.

• ECB cuts key interest rates by 25 bps in May monetary policy meeting, as expected
• ECB cuts rate but does not commit to a path of future rate moves. EURUSD modestly higher.
• The full statement from the June 2024 ECB rate decision
• ECB’s Lagarde: We are not pre-committing to a particular rate path
• ECB’s Lagarde: Rate cut today is justified by confidence in the path ahead
• ECB Pres. Lagarde press summary and a look at the EURUSD price action.
• Sources: ECB all but rules out a July cut. A September but is unclear
• No cut seen in July at the ECB
• Some ECB hawks argued that committing to June rate hike too early was a mistake

While the June cut was a no brainer the path ahead is muddy now, with indications of inflation continuing to bubble along. There is plenty to chew on now, and eyes will be on inflation reports in the weeks and months ahead.

The Bank next meets on July 18, then September 12 (October 10 and December 12 round out the year).

EUR/USD took it all its stride, a subdued sort of range for such a big event today:

This article was written by Eamonn Sheridan at www.forexlive.com.