ECB set for modest rate cut in June amid slowing inflation — Reuters

The European Central Bank (ECB) is considering easing monetary policy in June as inflation in the region slows. However, Reuters sources caution that any major rate cuts are still off the table for now.

ECB representatives at the International Monetary Fund and World Bank's Meetings highlighted weakening GDP growth in the eurozone and worldwide, citing uncertainty over US tariff policy as a major drag.

US President Donald Trump’s moves have shaken confidence in the American economy, triggering a plunge in oil prices and a drop in the dollar against the euro. According to Reuters, this has eased inflationary risks in the region. However, the bloc’s outlook remains uncertain due to fragmented global trade, a surge in cheap Chinese imports, and rising domestic demand fueled by Germany’s fiscal policy. Sources close to the news agency note that a 50 basis point ECB rate cut currently appears unjustified. Such an aggressive move could spark concerns among market participants.