ECB rate cut coming, but not just yet, says Governing Councils Kazimir

The European Central Bank is increasingly confident that inflation is coming down, but should still hold off on an interest rate cut until June, Slovak Governing Council member Peter Kazimir said on Monday.

The ECB held rates unchanged at a record high last week, but its chief Christine Lagarde said discussions over easing policy have begun and plenty of relevant information would become available by June.

The European Central Bank is increasingly confident that inflation is coming down, but should still hold off on an interest rate cut until June, Slovak Governing Council member Peter Kazimir said on Monday.

The ECB held rates unchanged at a record high last week, but its chief Christine Lagarde said discussions over easing policy have begun and plenty of relevant information would become available by June.

Sources close to the discussion told Reuters on Friday that a clear majority of policymakers were in favour of a June move, and some have privately floated the idea of further move in July to win over a small group that would prefer an earlier start. Kazimir said confidence was "gradually building" that inflation would come back to the 2 per cent target next year, but warned that wage pressures still remain far too high, despite a noted slowdown.