• Interest rates should start to go down
• But ECB is in no rush to begin the process for now
• Cutting rates too early would be by all mean worse than waiting just a bit
• There’s the risk that inflation starts to come back and then one would need to raise rates much more

This fits with the earlier remarks from his peers but markets are still sticking to their guns. A rate cut for April is still ~91% priced in at the moment. The euro has moved off earlier lows but it owes more to a decline in the dollar on the session.

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