From Yahoo Finance: 2025-06-02 00:01:00

The European Central Bank is expected to cut interest rates for the eighth time this cycle, with traders anticipating a pause due to better-than-expected economy and inflation concerns. U.S. tariff uncertainty complicates the decision, as ECB weighs impact on business activity and inflation. ECB board members have differing views on the need for a rate cut, with some advocating for a pause. Trade tensions between the U.S. and EU add uncertainty, with potential impact on economic growth and inflation. Latest ECB forecasts may show small downward revisions to 2026 inflation estimates due to a stronger euro and lower oil prices. The ECB is likely concerned about rising long-term borrowing costs globally, but will emphasize the bloc’s resilience.



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