Central Banks
ECB Holds Interest Rates and Points to First Cut in June
- Deposit rate kept at 4%, as all but one economist predicted
- Officials say easing can begin if new outlook signals scope
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The European Central Bank held interest rates steady for a fifth meeting, while sending its clearest signal yet that cooling inflation will soon allow it to commence cuts.
The deposit rate was left at a record-high 4%, as overwhelmingly predicted by a Bloomberg poll. But the Governing Council flagged a possible reduction in its accompanying statement for the first time, contingent on its economic forecasts indicating consumer-price growth is safely headed to 2%.