ECB’s Kazimir: We must not change policy due to small deviations from inflation target

• There are also upside risks to inflation.
• We’ve brought rates into neutral territory.
• We remain in a good place.
• Vigilance essential despite inflation progress.
• Monetary policy must remain nimble.

He’s just reaffirming that the ECB is done with rate cuts and they will need significant reasons to cut further. Small deviations from the target won’t do it.

The market is pricing just 4 bps of easing by year-end and a total of 11 bps by the end of 2026. So, the market is currently in line with the ECB stance.

This article was written by Giuseppe Dellamotta at investinglive.com.