Turnaround on ECB rates coming soon, that's why

April, June or July? The question about the date for the ECB rate cut now has 3 answer options, after the signs of greater openness launched yesterday by Lagarde in a press conference.
The day after the meeting, bets are multiplying on an imminent turning point for monetary policy in the Eurozone, strengthened by interesting reflections from various members of the Eurotower in support of a decrease in the cost of money already in the coming months, while inflation in the euro area it falls more rapidly than expected.
Specifically, speaking a day after stressing that more data is needed before monetary easing can begin and that “we'll know a lot more in June,” policymakers echoed this perspective.
Some, however, have suggested that a quicker move in April should not be entirely ruled out.
read also ECB meeting: rates stuck at 4.5% and confidence in falling inflation.
June is a key month.
Everyone is waiting for the first ECB rate cut: is a turning point coming? The ECB will hold 3 meetings before the summer break, on 11 April, 6 June and 18 July.
The expected decrease in the cost of money should arrive in this time interval.
“The probability is growing that we could see a rate cut before the summer break,” Bundesbank President Joachim Nagel told the German podcast Table Today.
His words carry particular weight because Nagel was among the "hawks" pushing against a hasty rate cut.
The head of the French central bank, Francois Villeroy de Galhau, said that a rate cut should take place in the spring, from "April to June 21".
Finnish Olli Rehn also underlined that the discussion on lowering rates will resume in the "next meetings in April and June".
My assessment is that, based on the forecasts received now, the risks of premature interest rate cuts in terms of controlling inflation have substantially decreased, this is also influenced by the reduction in growth forecasts, he added.
read also ECB rates at 4.5%, who benefits? Here's who wins and who loses His Lithuanian colleague was more explicit, saying that a rate cut in June is very likely and could be the first of a series of cuts worth 25 basis points each.
Madis Muller, of the Estonian bank, highlighted the "vigorous increase in average wages in the euro area", saying that increases close to 5% would make it more difficult to slow down inflation.
After this series of comments, eurozone financial markets have fully priced in a rate cut in June, followed by three more by December, which would bring the 4% rate paid by the ECB on bank deposits to 3.0%.
Furthermore, investors doubt whether the ECB can move before the Federal Reserve, citing historical precedents.
The Fed is expected to cut its key rate on June 12.