State Street Global: The ECB will be cautious in maintaining a balanced stance

Des Lawrence, senior investment strategist at State Street Global, said that the ECB will take a reasonably cautious approach to strike a balance between a clear downward trend in inflation and wage growth that remains high. According to the strategist, this week's ECB interest rate decision will be about preparations, and the June meeting will be about the implementation of the first rate cut. "In our view, the ECB is likely to cut interest rates by about 100 basis points this year, as its current restrictive stance is increasingly inappropriate given economic fundamentals," he said. ”