• The ECB should pause further interest rate cuts until at least September.
  • We should keep out powder dry given the US-EU trade war.
  • No reason to lower rates in June and July.
  • Cutting further would be more risky than staying where we are now.
  • Further rate cut would likely have no effect on economic activity.
  • Economic activity held back by uncertainty rather than restrictive monetary policy.
  • Borrowing costs have come down so much over the past year that they are no longer slowing down economic activity and are potentially even stimulating growth.
  • A 'number of people' in the ECB Governing Council are also 'skeptical' about additional rate cuts.
ECB's Holzmann
ECB's Holzmann
Source: Forex Live