ECB Signals June Rate Cut as Euro Zone Inflation Eases
European Central Bank officials have strongly hinted at a rate cut in June after inflation in the euro zone fell closer to the 2% target.
Sarah Mitchell
ECB President Christine Lagarde confirmed that the governing council is gaining confidence that inflation is on a sustainable path back to 2%. Several policymakers have explicitly referenced June as the likely starting point for easing, barring any major upside surprises in the data. Markets are now fully pricing a 25 basis point cut at the June meeting, with two to three additional cuts expected by year-end.