The European Central Bank (ECB) is expected to start cutting its interest rates this Thursday, which are currently at their highest levels ever, in a move that will make it easier for families and businesses to lend.
Analysts expect this first rate cut to be 25 basis points.
“Barring last-minute surprises, the ECB will cut its interest rates by 25 basis points, a decision widely ignored by analysts and financial markets and which is said to have the consensus of the entire Governing Council,” it said. note from BPI sent to Lusa.
“This contraction is supported by a strong and sustained slowdown in inflation in recent quarters, confidence that it will continue to decline in the future, and the observation that monetary tightening is being strongly transmitted, cooling the economy and mitigating second-order impacts,” the text adds.
According to Frank Dixmier of Allianz Global Investors, “while there is consensus on the first cut, the pace of future cuts depends on the lively debate within the Board.”
After June, a second consecutive rate cut in July is far from certain because “we are not operating on autopilot,” warned Joachim Nagel, president of Germany’s central bank.
Other central banks, such as the North American Federal Reserve or the Bank of England, have not yet begun a cycle of interest rate cuts and should only do so towards the end of the year given the persistence of inflation.
Following the meeting, new macroeconomic forecasts will be published.
Author: Lusa
Source: CM Jornal
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