📉 ECB and BOE will not join the Fed in its dovish path? 🔜
📌 Even though investors are convinced that Central Banks must adopt looser monetary policy sooner rather than later, ECB is not in a rush to follow the Fed in its shift toward lower interest rates. Following Powell’s indication on Wednesday that officials are shifting their attention to lowering borrowing costs, his peers from Europe and UK stated that there is no guarantee that inflation will continue to slow down. Financial markets indicated that easing isn’t on the table just yet, regardless of what they might be betting.
📌 Christine Lagarde, President of the European Central Bank, stated that «we should absolutely not lower our guard,» and Andrew Bailey, President of the Bank of England, noted that «there is still some way to go» in the battle to control consumer prices. Particularly the BOE demonstrated a willingness to maintain strict monetary policy, with three out of nine rate-setters voting in favor of another hike.
📌 Probably, Thursday marked the end of further tightening measures in Europe, even if it seems that central bankers are ready to leave the Fed to make the first step towards more dovish policies, in the same way it was the first one to raise interest rates in 2021.