Europe | The decision for a September rate cut is wide open

Summary

As expected, the ECB leaves its monetary policy unchanged and leaves the door open for a rate cut at the next meeting in September, awaiting for more data on wages, profit margins and productivity that confirm its inflation outlook.

Key points

• Key points:
• The ECB keeps rates steady, as broadly expected
• The guidance on rates remains unchanged, with the ECB not pre-committing to a particular path
• The ECB seems to be more worried on growth dynamics and reiterates the one-off nature of the recovery in real wages as a driver for the stickiness of service prices

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