ECB leaves open the possibility of interest rate cuts

ECB premises

Mirabaud: To no one’s surprise, the European Central Bank (ECB) has decided to keep official interest rates unchanged and has sent out a clearly pessimistic message. Inflation is expected to fall more than expected – it may not even reach 2% in 2026 – and economic growth is expected to be very limited: according to the latest ECB forecasts, gross domestic product (GDP) will grow by barely 0.6% this year. One of the most salient aspects is the timing of monetary policy cuts (some indication is needed as to when these might occur, but June is the most likely time it seems). In short, the ECB is leaving open the possibility of cutting interest rates.

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