The European Central Bank (ECB) is set to cut interest rates on Thursday, likely by 0.25 percentage points to 2.75%, with hints of further easing amid uncertainty over U.S. President Donald Trump’s economic policies.
Some ECB policymakers aim to lower rates to 2% by June, though analysts see this as reassurance rather than a firm commitment, especially if U.S. tariffs hit eurozone exports.
Despite inflation rising to 2.4% in December—its highest since July—the ECB views this as temporary and expects inflation to settle at its 2% target this year, assuming gradual rate cuts continue.
via Reuters
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