ECB: Lower Cruising Altitude

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The European Central Bank (ECB) cut policy rates by 25 basis points at its June meeting, its first rate cut in almost five years, but did not provide firm guidance on how its rate cycle may proceed from here. While the ECB Governing Council (GC) has lowered its cruising altitude somewhat, the data flow over the coming months will decide the speed at which the ECB removes additional restrictiveness.

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