"ECB Cautious on Rate Cuts as Markets Ease, Villeroy Asserts"
European Central Bank (ECB) policymaker Bostjan Vasle has stated that market expectations for an interest rate cut in March or April are premature, and the ECB will need until at least spring to reassess its policy outlook. Vasle argued that financing conditions may no longer be restrictive enough, given falling bond yields and expectations for rate cuts in 2024. He emphasized the need to understand underlying trends better and wait for new projections before revising the ECB's stance. Vasle also highlighted the uncertainty surrounding inflation, wage growth, and the labor market, suggesting that it is appropriate to observe price growth and reassess the outlook.