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Volker Schmidt, Senior Portfolio Manager at ETHENEA, does not expect any change in interest rates at the meeting of the European Central Bank (ECB) on 7 March. However, he does expect indications as to when the first cut in interest rates could come: "The upcoming ECB meeting will not bring a decision on an interest rate change. However, the new growth and inflation forecasts should give an indication of when 'long enough' is finally over and the ECB could start cutting rates.
At the press conference in October, Christine Lagarde said that the ECB has reached a level of interest rates that, if maintained for long enough, should lead to the achievement of the medium-term inflation target of two per cent. When asked what 'long enough' meant, Lagarde replied that no...
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