From Yahoo Finance: 2025-06-05 12:08:00

Traders expect the ECB to halt rate cuts amid global economic uncertainty. The euro rose to six-week highs against the dollar following Lagarde’s comments. Money markets now see a 20% chance of a July cut. The euro’s strength is driven by the ECB’s hawkish message. Inflation slowed to 1.9% in May.

Lagarde said policymakers were “virtually unanimous” on the rate cut. Increased government spending may add to price pressures later. Analysts see a pause as the base case for future meetings. U.S. tariff policy remains a challenge. The ECB expects the economy to grow 0.9% this year with trimmed 2026 forecasts at 1.1%.



Read more at Yahoo Finance: Analysis-For markets, end to ECB rate cuts just got closer