• Mid-term inflation outlook too uncertain to say whether we need a June cut.
  • ECB projections likely to show lower inflation this year and the next, but longer term is uncertain.

I personally think the ECB shouldn't cut in June and pause now to see how things evolve. There's a scenario where they might have already over-eased and could struggle to bring inflation sustainably back to target.

ECB's Knot
ECB's Knot
Source: Forex Live