From Morningstar:

1. Expectations are growing for the European Central Bank (ECB) to lower interest rates in June by a smaller amount than previously forecast, as inflation numbers have fallen since January.

2. ECB has maintained its key interest rate at a record high of 4.5% since September 2023, keeping a close eye on a potential interest rate cut coming in June.

3. Key ECB members suggest that a decision on lowering interest rates is months away, with varying opinions on the right timing within the council.

4. The ECB is expected to hold rates steady, with investors focusing on the economic outlook during the ECB meeting, including projections on growth, inflation, and wages.

5. Inflation in the eurozone is falling quicker than expected, with consumer price index down in February and core inflation remaining stable. Collective bargaining deals will be crucial for understanding future wage developments.



Read more at Morningstar: Despite Falling Inflation, ECB Should Hold Interest…