Europe | Setting the stage for rate cuts

All in all, while waiting for wage data that underpin the expected slowdown in service prices, the ECB heads to the June meeting leaving the stage set to begin the cycle of cuts, regardless of the Fed's monetary policy steps.

Key points

• Key points:
• The ECB kept interest rates on hold for the 5th meeting in a row, as expected.
• For the first time, they mention they consider appropriate to reduce the current level of monetary policy restriction if inflation continues to move toward its target.
• The institution asserted its data-driven mode, independent from the Fed's rate decisions.
• The latest inflation data aligns with the ECB's forecasts. Yet, they will closely monitor wages and their impact on services prices.

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