Lagarde Q&A: Some governors would have preferred to pause and wait on more data

<ul><li>Some governors would have preferred to pause and wait on more data</li><li>A 'solid majority' agreed with the decision</li><li>Three quarters of the rise in the 2024 rise in inflation is due to carry-over from 2023</li><li>We didn't discuss how long we will leave rates at these levels, we will continue to be data dependent</li><li>We are not saying that we're now at the peak, we can't say that now</li><li>The focus is expected to move towards duration</li><li>Policy transmission is faster than previous cycles</li><li>We are going through a phase of very sluggish growth</li><li>We see weak signs</li></ul><p>The market is pricing only a 10-15% chance of a further ECB hikes, with cuts more likely starting in March.</p><p>There was some euro buying when Lagarde said that they couldn't say rates had peaked but the gains quickly backed off.</p>

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