ECB likely to cut key interest rates only hesitantly – Commerzbank

From the ECB's perspective, wage settlements will play a significant role in interest rate decisions in the coming months, economists at Commerzbank report.

ECB unlikely to cut key interest rates in April

The ECB is unlikely to cut key interest rates in April, as the markets expect. Because wages are still rising sharply, it is likely to wait until June.

We expect three 25 bps rate cuts by the end of the year.

We believe that the market's expectations of an interest rate cut of almost 150 bps this year are clearly exaggerated.