ECBs Centeno is on the wires saying:
- We are almost out of the woods in this inflationary cycle.
- ECB rate cuts are to continue until inflation converges to target.
HMMM
From the ECB yesterday,
Staff now see headline inflation averaging 2.3% in 2025, 1.9% in 2026 and 2.0% in 2027. The upward revision in headline inflation for 2025 reflects stronger energy price dynamics. For inflation excluding energy and food, staff project an average of 2.2% in 2025, 2.0% in 2026 and 1.9% in 2027.
If 2.0% is the CPI target, the CPI has not converged to the target yet.
This article was written by Greg Michalowski at www.forexlive.com.
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