From Morningstar: 2024-04-04 13:32:00

Despite falling inflation, the European Central Bank (ECB) is expected to keep interest rates unchanged at next week’s policy meeting on April 11. Governing council members have cited the need to evaluate fresh wage data before making the decision. Stock and Bond Markets anticipate a June Rate Cut Eurpoean markets are predicting a first rate cut of 25 basis points in June, with 3 more rate reductions expected by the end of 2024. ECB council members have fueled these expectations, with many economists surveyed expecting the first interest rate cut in June. The US Federal Reserve chairman has also raised questions about the timing of a rate cut in the US. Will ECB Council Members Delay Too? The chairman of the US Federal Reserve has raised questions about the June rate cut in the US, which may impact the ECB’s own decision. Several council members have dismissed any considerations about the Fed’s decision, emphasizing the importance of Europe’s own economic forecasts and inflation. Eurozone Inflation Falling, Markets Rising Inflation in the eurozone fell to 2.4% in March, down from 2.6% in February, with core inflation also dropping to 2.9%. Economist predict an interest rate cut is on the horizon due to falling inflation, which could stimulate economic growth in Europe. Will the ECB Cut Rates? This is What Economists Think Experts predict a near certain interest rate cut from the ECB in June, as disinflation continues in the Euro Area. There is anticipation for further easing from the ECB, with expectations of a weaker economic performance and a preference for the US dollar over the euro.



Read more at Morningstar: Will the ECB Cut Interest Rates on April 11?