ECB Support for Another Rate Cut in June
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The European Central Bank (ECB) policymakers, in response to continued downward inflation, are increasingly confident of a rate cut in June, although it is not expected to be substantial. Last week, several ECB governors attended the International Monetary Fund (IMF) and World Bank Spring Meetings, discussing the potential negative impacts on the Eurozone and global economy due to U.S. tariffs. Additionally, the latest Eurozone economic data reflects this phenomenon. As for inflation, so far, there is no evidence of deterioration due to tariffs. Sources indicate that more ECB governors believe a successive eighth rate cut of 0.25% on June 4 is a more appropriate decision. The ECB will also release its latest economic forecast on the same day. However, ECB officials remain open-minded, awaiting next month's data before making a final decision.
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