ECB’s Centeno: We made need rates below neutral rate to prevent inflation sub-2%

• Interest rate to prevent inflation from falling under 2% may have to come below the neutral rate between 1.50-2.00%

The market is pricing 1.64% as the low for ECB rates which is a bit more than 50 bps fully priced in. Getting helow his neutral range would mean at least one more cut on top of that.

This article was written by Adam Button at www.forexlive.com.