Executive Board member of the European Central Bank (ECB) Isabel Schnabel hit the wires late on Friday noting that a single cut from the ECB doesn't necessarily guarantee follow-up cuts, and that inflation in the EU, particularly services inflation, is proving a tricky beast to slay.
Key highlights
The first cut doesn't automatically lead to a series.
The pace and extent of ECB rate cuts will depend on the data.
Freight costs and protectionism could drive inflation.
Some data wasn't quite in line with the projections.
Services inflation is proving to be particularly sticky.
Services inflation is showing that the last mile in the inflation fight is especially difficult
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