Suche
Mein Konto
ECB stays the course: Lagarde confirms interest rate cut in summer
Underlying changes on the stock market: interest rate cuts uncertain, stock markets facing uncomfortable times. How does US inflation affect the ECB? Read more.
ECB stays the course: Lagarde confirms interest rate cut in summer
At first glance, the latest meeting of the European Central Bank (ECB) did not bring any big news. However, ECB President Christine Lagarde hinted that a rate cut was likely, although she stressed that this could not happen until the next meeting in June. Despite this caution, a normalization could occur after rising interest rates in recent years.
On another level, however, something has clearly changed in the last few days: the mood. At the press conference after the meeting it became clear that not only Europe but also the United States has a role to play. The inflation rate in the US has risen to 3.5 percent, suggesting that the US Federal Reserve will refrain from cutting interest rates for the time being.
These changes could cause investors on the stock exchanges to rethink. Many had fully expected that the major central banks would make numerous interest rate cuts this year. The price gains on the stock markets were largely based on this assumption, as stocks become more attractive when interest rates fall. But the certainty of interest rate cuts could prove wrong, leading to an uncertain future for share prices in the coming months.