Traders bet ECB will chart own rate-cut path

Lagarde stressed the ECB is “data-dependent, not Fed-dependent.” — Reuters

TRADERS’ bets on multiple European Central Bank (ECB) interest rate cuts this year have barely been shaken by hot US inflation that slashed Federal Reserve (Fed) easing expectations this week, highlighting a growing investor focus on the divergence between the two regions.

The ECB cemented that conviction on Thursday, signalling that it may soon start cutting rates. President Christine Lagarde stressed the ECB is “data-dependent, not Fed-dependent.”