Weekend – de Cos says European Central Bank could start cutting interest rates in June

Bank of Spain´s governor Pablo Hernández de Cos and therefore European Central Bank Governing Council (GC) member Pablo Hernandez de Cos spoke in an interview with Spanish newspaper El Periodico.

He expects falling inflation and therefore rate cuts:

• “If our macroeconomic forecasts are met in the coming months, it is normal that we will start cutting rates soon and June could be a good date to start”

On June discussions at the GC:

• “current degree of consensus is very high and I hope this will continue to be the case”

Reuters adds:

• Asked whether it was reasonable to expect three rate cuts of 25 basis points this year, De Cos did not want to be “very explicit about the time pattern of rates” but said that market conditions were compatible with meeting the ECB’s medium-term inflation target of 2%.

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