Europe

In this publication you will find, on a weekly basis, our selection of the most relevant news regarding financial regulation.

All in all, while waiting for wage data that underpin the expected slowdown in service prices, the ECB heads to the June meeting leaving the stage set to begin the cycle of cuts, regardless of the Fed's monetary policy steps.

The German Bund 10Y term premium turned positive in the aftermath of the pandemic, boosted by the upward trend in the uncertainty surrounding inflation as well as spillover effects from a higher US term-premium. Furthermore, Euro Area growth uncertainty and moderation in ECB bond purchases also contributed to the upside.

A few days ago, the European Central Bank (ECB) announced the first revision of its operational framework, designed to guide short-term interest rates into line with its monetary policy decisions and provide liquidity in a context of gradual balance sheet reduction.

In this publication you will find, on a weekly basis, our selection of the most relevant news regarding financial regulation.

This meeting further supports the expectation of an initial rate cut in June in line with our forecasts. The updated projections match our own. Nevertheless, the ECB needs to verify that core inflation, particularly from services and consequently wages, moderates as expected.