PIMCO forecast another two European Central Bank rate cuts this year, September & December

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PIMCO forecast another two European Central Bank rate cuts this year, September & December

PIMCO says the next moves from the ECB will be decided by data flow over the coming months. In brief:

• we envision the ECB to keep cutting rates at staff projection meetings
• market pricing seems reasonable and broadly in line with our long-held baseline of three cuts for this year
• we expect additional cuts in September and December

PIMCO acknowledge that risks are skewed towards fewer cuts, mainly on the back of

• sticky services inflation,
• a resilient labour market,
• loose financial conditions
• and ECB risk management considerations.

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Pacific Investment Management Company (PIMCO) is a US firm that manages circa US$2 trillion in assets

From the weekend, the ECB is cranking up 'protect the euro' comments (IMO anyway):

• ECB's Holzmann says further rate cuts by the Bank could slam EUR and spike inflation

                This article was written by Eamonn Sheridan at www.forexlive.com.

Source: PIMCO forecast another two European Central Bank rate cuts this year, September & December

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