When are those rate cuts coming, already? The European Central Bank may be providing some hints
Markets are waiting to hear what European Central Bank President Christine Lagarde has to say about the timing of a first interest rate cut
FRANKFURT, Germany (AP) — The European Central Bank will likely use its Thursday meeting as a prelude to a first interest rate cut in June as the rich world’s central banks, including the ECB and the U.S. Federal Reserve, assess how soon receding inflation will let them loosen credit for businesses and consumers.
It’s a step closely watched for by stock investors, after markets soared in recent months on expectations of lower rates by this summer.
Related News: Fed's Powell reinforces likelihood of more rate hikes because of persistently high inflation
Broad stock market indexes fell immediately in the U.S. on Wednesday and bond prices rose after a hotter than expected inflation report raised fears that the Fed may wait longer than previously thought to lower its benchmark interest rate.
