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President of the European Central Bank (ECB) Christine Lagarde arrives to address a press conference following the meeting of the governing council of the ECB in Frankfurt am Main, western Germany, on April 11, 2024. FRANKFURT — The European Central Bank this week is set to cut borrowing costs for the euro area for the first time since September 2019. It will mark the official end to the record fast-hiking cycle that begun after the Covid-19 pandemic as inflation soared higher. But investors' attention looks like it has already moved on to what will happen after this June cut by the Frankfurt institution. "Judging by the commentary from officials, there is no questioning of the wisdom of cutting rates on 6 June," said Mark Wall, ECB watcher with Deutsche Bank.
Persons: Christine Lagarde, Mark Wall Organizations: European Central Bank, ECB, Deutsche Bank, ECB — Locations: Frankfurt, Germany, FRANKFURT
London CNN —Inflation in Europe has ticked up for the first time in five months, casting doubt on the possibility of a steady stream of interest rate cuts by the European Central Bank over the next few months. The European Central Bank began hiking rates in July 2022 to curb runaway inflation sparked by the reopening of the world’s economies following the pandemic as well as Russia’s full-scale invasion of Ukraine. “May’s increases (in inflation) won’t stop the ECB from cutting interest rates next week. All 82 economists polled by Reuters ahead of Friday’s inflation data expected the ECB to cut rates by a quarter of a percentage point next week. Over two-thirds, 55 of 82, expected two more cuts this year, in September and December.
Persons: , Jack Allen, Reynolds, Claus Vistesen, Organizations: London CNN, European Central Bank, Reuters, ECB, Capital Economics, Pantheon Locations: Europe, Ukraine
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