ECB's Vujcic:April or June for a rate cut is not a big difference
Source Fxstreet
European Central Bank (ECB) Governing Council member Boris Vujcic argued on Tuesday that it would not make a big difference whether the ECB starts lowering rates in April or June, per Reuters.
"I think it's more important that we achieve a kind of smooth transition," he added and continued:
"I think that 25 basis point moves are preferable to larger steps. It doesn't have to be continuous, there will some be pauses."
Market reaction
EUR/USD edged slightly higher following these comments and was last seen trading at 1.0845, rising 0.1% on the day.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
The US Federal Reserve is expected to cut the policy rate for the first time in 2025.
The Bank of Canada (BoC) is widely anticipated to reduce its benchmark interest rate by a quarter percentage point on Wednesday, taking it to 2.50% after three consecutive ‘on hold’ decisions.
The risk rally on global indices takes a breather amid a typical market caution heading into the key central bank event risks, with the US Federal Reserve (Fed) policy announcements eagerly awaited.
The Pound Sterling (GBP) faces selling pressure against its major peers on Wednesday after the release of the United Kingdom (UK) Consumer Price Index (CPI) data for August.
The dollar weakened, equities fell, and gold set new records on Wednesday as investors waited for a Fed rate cut later in the day.
