More and more ECB officials support pausing monetary policy easing cycle

According to insiders interviewed by Bloomberg, a growing number of the European Central Bank (ECB) officials doubt the need to continue interest rate cuts this month.

According to the agency's sources, the representatives of the regulator are considering a possible pause in the cycle of monetary policy easing at the meeting on April 17. They point to increased uncertainty over US trade policy and a sharp rise in European military spending among the main arguments for this.

More dovish ECB officials still believe it is necessary to further reduce the borrowing costs in the region, the agency's interlocutors say. However, according to Bloomberg, they are ready to postpone this step until June, if their more hawkish colleagues insist on taking more time to assess the incoming data.

The ECB has cut its deposit rate to 2.5% from 4% amid inflation approaching the 2% target and sluggish economic growth. Yet escalating global trade tensions and unclear outlook make it difficult for the regulator to make further decisions.