• It is desirable, inescapable that we do have several years of wage increases above normal
• But what we need to make sure is that it returns to normal
• And I would say we’re confident that it is on track
• If that assessment is confirmed, we an start to look to reverse the rate hikes we have made previously

This isn’t anything new. The ECB would just like confirmation from the wages data in May before being more explicit about their conviction to get to the first rate cut in June.

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