ECB's Vasle: Market pricing for rate cuts is excessive

Boštjan Vasle, Governor of the Bank of Slovenia and member of the Governing Council of the European Central Bank (ECB), said on Monday, “market pricing for both start of rate cuts and totality of cuts in 2024 is excessive.”

Additional quotes

Recent accommodation priced into rates is inconsistent with policy stance to get inflation back to target.

Inflation will rebound in 1H 2024 and ECB should only reassess policy outlook after this period.

Wage formation in Q1 2024 will be crucial for policy outlook.