Danske: It is unclear how the ECB will decide at its April meeting

On March 17, Danske Bank studied European Central Bank observer Piet Haines Christiansen said in a report that it was not yet possible to predict the ECB’s decision at the April meeting. “Looking ahead to the April meeting now, I strongly believe that it is not possible to make a forecast for the meeting at this stage,” he said. “Unless there is a clear indication that upside risks to inflation will dominate, Christiansen expects the bank to cut rates.” However, this is not an established decision that the ECB will make. Money markets are now pricing in a 60% chance of a 25bp rate cut and a 40% chance of keeping rates unchanged at the ECB’s April 17 meeting, LSEG data showed.