- On inflation: “We are not unhappy with what we have seen.”
- Inflation could return to target sooner than expected.
- Current inflation numbers provide reassurance.
- Confident in achieving inflation target sustainably by 2025, but timing is unclear.
- Need to carefully evaluate services inflation.
- European consumers spend less than Americans.
- Pace of cuts will be decided later.
- Uncertain about what it takes to cut rates by 50 basis points.
- Unclear on where the neutral interest rate is.
The euro is facing difficulties again today, similar to the pound. The recent drop in EUR/USD was mainly due to dollar strength, but that’s not the case today.