The European Central Bank (ECB) has announced its decision to maintain interest rates at their current levels for the fifth consecutive meeting but hinted at potential rate cuts in June if certain conditions are met, CNBC reports.
This announcement marked a notable departure from previous communications, as the ECB had not previously indicated any intention to loosen its monetary policy stance. The decision was driven by a need to assess the inflation outlook, the dynamics of underlying inflation, and the strength of monetary policy transmission.
Market expectations suggest that there could be a 25-basis-point cut in interest rates in June, according to data from the London Stock Exchange Group (LSEG). However, the pace and extent of further cuts throughout the year may be influenced by US inflation data and Federal Reserve policy.
