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The European Central Bank is almost guaranteed to cut rates. Here's what could happen next
The European Central Bank is all but guaranteed to trim its key interest rate on Thursday. Markets were last pricing in an around 99% chance of a 25-basis-point cut, according to LSEG data. That would take the deposit facility rate to 2% — half of the mid-2023 high of 4%. But Europe faces a highly uncertain economic outlook, raising the question of what the ECB could do beyond Thursday’s meeting. Inflation is now hovering around the central bank’s 2% target again, with flash data on Tuesday showing consumer prices in the euro zone rose just 1.9% in May. Meanwhile, economic growth has still been sluggish: The ... (full story)
