Eurozone inflation remained steady at 2.4% in April despite a slight rise in core inflation to 2.7%. Meanwhile, the economy rebounded with 0.3% growth in the first quarter, ending a brief recession in the second half of last year. Economists expect the European Central Bank to cut interest rates in June to prevent an economic slowdown, but the pace of easing remains uncertain due to firmer core inflation and ongoing risks.
Inflation in the euro zone has slightly decreased to 2.4%. This has led to expectations that the European Central Bank will begin reducing interest rates in June. While some sectors remain inflationary, overall price pressures have eased. A low unemployment rate and the recent messaging of ECB officials support the likelihood of rate cuts in the near future.
The European Central Bank (ECB) is considering lowering interest rates in June based on updated inflation projections. The bank will assess economic data, including wage negotiations and labor market trends, to determine the appropriate path for rates. Despite some inflationary pressures, the ECB expects inflation to continue falling in the coming years. However, it warns that price pressures, especially in the service sector, will remain visible and require ongoing monitoring of incoming data. Market analysts anticipate multiple rate cuts from the ECB this year.
The European Central Bank (ECB) is keeping interest rates steady despite economic concerns. While inflation is expected to moderate, GDP growth forecast for 2024 has been revised down to 0.6%. Market expectations for a rate cut in June align with the ECB's views. The ECB will monitor wage growth and profit margins to assess inflation risks. The euro weakened after the announcement, which has raised expectations of rate cuts in the summer.
