ECB's de Guindos: We will cut interest rates when we are sure of meeting 2% inflation goal

<ul><li>There is good news on inflation recently</li><li>Sooner or later, that will be reflected in monetary policy</li><li>Optimistic about inflation dynamics, even on core inflation</li></ul><p>It's all relative. That is the key takeaway from his remarks above. They are stressing data-dependency now but the timing of any policy pivot will be more of a subjective case. In any case, traders are still pricing in ~98% odds of a rate cut in April so it will be interesting to see how this all plays out in the next two months.</p>

This article was written by Justin Low at www.forexlive.com.