Reported 6 months ago
The European Central Bank (ECB) cut interest rates for the first time in five years to 3.75% in an effort to combat inflationary pressures. However, the ECB's future monetary policy remains uncertain due to lingering wage and price pressures. While an easing cycle is expected, the ECB is taking a cautious, data-dependent approach. Some policymakers anticipate a pause in July before potential rate cuts in September and December. Despite strong domestic price pressures and elevated wage growth, the ECB remains vigilant about future inflation outlook, with external factors such as the U.S. Federal Reserve's decisions also influencing its monetary policy stance.
Source: YAHOO