The European Central Bank held all three of its key interest rates unchanged at its April 2024 Governing Council meeting, leaving the deposit facility rate at 4.00%, but the subsequent press conference by President Christine Lagarde indicated that a rate reduction could come as early as June. Markets increased bets on a cut at the June meeting.
Lagarde told reporters that the Governing Council was closely monitoring wage data.
WAGE DATA AHEAD OF JUNE
The ECB has identified first-quarter 2024 wage data as an important dataset that will be available to the Governing Council before it convenes in June.
Lagarde did not offer an unconditional commitment to act in June.
MARKET REACTION
Markets treated the June meeting as the most likely timing for a first cut.
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