ECB's Main Scenario Points To Interest Rate Cut In June

The European Central Bank (ECB) could commence interest rate cuts in June following a sustained deceleration in inflation within the eurozone, ECB policymaker Pablo Hernandez de Cos stated, as reported by Jesus Aguado and Emma Pinedo for Reuters.

Consumer price growth in the 20 nations sharing the euro currency decreased to 2.4% in March from 2.6% the previous month, contrary to expectations for a stable rate.

His remarks came after a recent unexpected slowdown in eurozone inflation, solidifying the argument for the ECB to initiate reductions in borrowing costs from their current record highs.

"As of today, the central scenario is that June could be the first interest rate cut," De Cos mentioned at a financial event held in Barcelona.

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Consumer price growth in the 20 nations sharing the euro currency decreased to 2.4% in March from 2.6% the previous month, contrary to expectations for a stable rate. This decline in headline inflation was attributed to decreases in food, energy, and industrial goods prices.

Meanwhile, underlying inflation, closely monitored by the ECB to assess the persistence of price pressures, declined to 2.9% from 3.1%, falling below the projected 3.0%, as indicated by data from the EU's statistics agency.

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