ECB Cuts Rates By 25bps (As Expected); Projects Worsening Stagflation

ECB Cuts Rates By 25bps (As Expected); Projects Worsening Stagflation As expected, The ECB cut rates by 25bps today to 3.50%. In its statement (below), the central bank confirmed it will continue to follow data dependent path, cut its PEPP by €7.5 bn a month...hiked inflation expectations and cut growth expectations... The ECB staff increased its inflation expectations: ECB Sees 2024 Inflation Ex-Food/Energy at 2.9% vs 2.8% ECB Sees 2025 Inflation Ex-Food/Energy at 2.3% vs 2.2% ECB Sees 2026 Inflation Ex-Food/Energy at 2% vs 2% ECB Sees 2026 Inflation at...