• 25 bps rate cut needed in April.
  • US tariff announcement warrants more accomodative monetary policy.
  • We need to move to a less restrictive policy stance.
  • Worsening of trade tensions can be deflationary in the medium term.
  • Policy is currently still more restrictive rather than neutral.

This is not a surprise at all. The markets were already 100% sure of a cut.

ECB's Simkus
ECB's Simkus
Source: Forex Live