ECB eyes spring rate cuts, inflation defeat in sight
The European Central Bank (ECB) is likely to commence cutting rates in the spring, specifically between April and June 21, due to the perceived imminent victory in the battle against inflation, according to Reuters, citing Francois Villeroy de Galhau, the French central bank chief and an ECB policymaker.
Villeroy de Galhau also restated his expectation that the inflation rate in France will decrease to 2 per cent next year. On Tuesday, the Bank of France lowered its economic growth predictions for 2024, projecting a growth rate of 0.8 per cent for this year, a slight decrease from the previously estimated 0.9 per cent growth in December.
Earlier this month, ECB chief Christine Lagarde strongly suggested that the much-anticipated rate cut is more likely to occur at the central bank’s meeting in early June than in April.
