ECB’s data-dependent ‘dialing back’ process has started

ECB delivered expected 25 bps cut: At today’s meeting the GC unsurprisingly decided to cut its key interest rates by 25 bps, the deposit rate to 3.75% and the repo rate at 4.25%. It continues with APP non-reinvestments and will – as previously announced - reduce PEPP holdings by €7.5 billion per month on average over the second half of 2024. It intends to fully stop reinvestments at the end of 2024.