ECB Officials Hesitate on Rate Cuts After Fed Easing Plans Reduced

Reported 7 months ago

The European Central Bank (ECB) is facing increased caution regarding further interest-rate cuts following the US Federal Reserve's adjustment to its easing plans. The Fed's shift from three to one reduction in 2024 has prompted ECB policymakers to be more wary of potential inflation risks through a weaker currency. Despite stressing their independence, ECB officials are expected to proceed cautiously with rate cuts amid uncertainties, with market expectations currently indicating a limited chance of additional ECB moves this year.

Source: YAHOO

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