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Live Coverage: ECB cuts rates, conveys a dovish message

The ECB all but declares victory on inflation while cutting rates once again. The Euro is under pressure. Live coverage. 

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ECB faces slowdown and political elephants

Europe's largest countries do not have governments – German and French vacuums are the elephants in the room for the European Central Bank (ECB) which needs to produce forecasts. Uncertainty dogs decision makers, and is set to come on top of the expected rate cut, the fourth from the Frankfurt-based institution in this cycle. That is bad news for the Euro.

The last ECB meeting of 2024 consists of the rate decision, the statement, new forecasts – released only once per quarter – and the press conference by Christine Lagarde. She will likely doge political questions about European countries, but will be forced to admit economic uncertainty also due to other factors issues, such as Sino-American relations.

Inflation has been dropping in the Eurozone, but that is not only a victory for the ECB, but also a sign of weakness.

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(This story was corrected on June 6 at 07:45 GMT to say that the European Central Bank is set to cut interest rates for the first time since 2019, not 2020.)

Author

Yohay Elam

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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