Frankfurt (Germany) (AFP) – Buoyed by falling inflation, the European Central Bank is expected to keep borrowing costs on hold one last time Thursday while laying the ground for a first interest rate cut in June.
The Frankfurt-based institution has left its key rates unchanged since October 2023, following an unprecedented streak of hikes to tame red-hot inflation.
ECB president Christine Lagarde said after last month’s meeting that governing council members were not “sufficiently confident” yet on inflation to consider loosening the reins.
The case for rate reductions has strengthened since then, with eurozone inflation slowing more than expected in March to 2.4 percent — bringing the ECB’s two-percent goal within reach.
A change of course as early as this week seems highly unlikely however, after ECB officials repeated
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