The prospect of the European Central Bank diverging from the Federal Reserve on interest rate cuts is likely to be "particularly negative" for the 20-nation euro zone, according to one economist.
The ECB appears on course to cut interest rates in June, barring any major surprises, and recent inflation data has since bolstered the case for an imminent reduction in borrowing costs.
It leaves the ECB firmly on track to cut interest rates before the Fed.
"The problem of cutting rates right now is that the ECB takes for granted the strength of the euro .
Lacalle said a June rate cut from the ECB was not going to make German, French or Spanish businesses take more credit "because a small rate cut is not the driver of credit demand."
Persons:
Christine Lagarde, Daniel Lacalle, Gestion, CNBC's, Lacalle
Organizations:
European Central Bank, ECB, Federal Reserve, CNBC
Locations:
Frankfurt, Germany, U.S