Indonesian headline inflation decelerates further in July, monetary policy stance to remain accommodative
ECB likely to cut DFR by 10 bps in June 2020
The European Central Bank is unlikely to downwardly revise its baseline before the second quarter of 2020, according to a Barclays research report. The core consumer prices of currency bloc are expected to catch up rapidly to levels in line with the ECB’s medium-term price stability target by 2021.
“We expect the ECB to cut the DFR once more, in June next year by 10bp, taking it to -60bp to increase the tiering multiplier in H1 20”, stated Barclays.
Meanwhile, the ECB President Lagarde is expected to keep working on re-building unity within the Governing Council, calling for fiscal policy to act where there is room to do so and focusing on the upcoming strategic review, added Barclays.