Fiscal Takes the Lead as ECB Cuts Rates
PGIM Fixed Income's Deputy Head of Global Economics and Chief European Economist, Katharine Neiss, PhD, reacts to the European Central Bank's (ECB) March Monetary Policy Meeting, which coincided with significant fiscal spending announcements in Germany and the EU. President Lagarde highlighted that there is “phenomenal” uncertainty and that the Bank needs to keep their options open as to where rates are going next. However, Katharine highlights that the ECB is likely done with rate cuts for now, with a potential cut of 25 bps later in the year, ending at 2.25%.
