European Central Bank President Lagarde: It is premature to claim victory over inflation now.
European Central Bank Vice President Kandos warned that even after the surprising data in September, it is still too early to assert the inflation situation. "We cannot declare victory," he said on Friday. "That's because the inflation in the service sector is still very high - although it has been slowing down, it's just very, very, very slight." The euro area inflation rate fell to 1.8% in September, the first time since 2021 that it has been below the European Central Bank's target of 2%. However, the inflation rate may rise again towards the end of the year due to fluctuations in energy costs. Other indicators are also high. Kandos stressed, "(whether to cut interest rates) will largely depend on"
Another Bank of Japan official reinforces a dovish stance: it is necessary to patiently maintain loose monetary policy.
A key dove official of the Bank of Japan Policy Board emphasized the need to maintain an accommodative monetary environment until inflation expectations are anchored, reinforcing the Bank of Japan's stance of not tightening policy prematurely.
Japan's new prime minister has just taken office and turned dovish? Mentioned that it is not suitable now to further raise interest rates, the yen fell nearly 2% at one point.
Commentators say that this is the clearest stance Shinzo Abe has taken against further rate hikes to apparently break away from his hawkish monetary policy reputation. Analysts say this encourages investors to rebuild short positions on the Japanese yen. Following the first meeting with Shinzo Abe, Bank of Japan Governor Haruhiko Kuroda stated that the central bank is supporting the economy through loose monetary conditions and will be cautious in deciding whether to raise rates further.
European Central Bank Vice President bullish on economic recovery, market expects a 90% possibility of interest rate cut in October.
European Central Bank Vice President Luis de Guindos expressed optimism about the economic recovery of the euro area in his speech in Riga, although he acknowledged that risks still exist.
Rate cut in October in sight? Eurozone CPI fell by 0.1% month-on-month in September, the largest decline since January 2024.
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Directly hinting at a rate cut! Lagarde stated that in October, they will consider 'increased confidence in controlling inflation'.
Various signs indicate that the European Central Bank may cut interest rates again by mid-October, just three weeks after lowering policy rates. Two weeks ago, the market was still expecting the next rate cut to be in December. Following changes in market pricing and analyst expectations, Lagarde's statement is undoubtedly a very strong policy hint.
