Fresh inflation data will be key to further ECB rate decisions – Reuters

This Tuesday, the main event of the day for Europe will be the release of inflation data for May. As forecast by analysts quoted by Reuters, last month's consumer price growth in the eurozone slowed to 2.0% year-on-year from April's 2.2%.

This data will be key to the European Central Bank (ECB) rate dynamics.

According to the expectations of most experts and market participants, the ECB will almost certainly cut the rate by a quarter point to 2.0% at Thursday's meeting. Following this, a pause in the monetary policy easing cycle is expected due to the steady performance of the bloc's economy and heightened inflation fears.

Uncertainty over US tariffs complicates forecasting for the ECB, especially in terms of their impact on business activity in the region and the implications for inflation, the agency emphasized.

Meanwhile, according to Reuters, markets have been jolted by more news on tariffs, with the Trump administration demanding that trading partners submit their negotiating proposals by Wednesday. As the agency points out, US officials are trying to speed up the negotiation process before the deadline expires in just five weeks.