ECB Seen Making Fewer Rate Cuts in Fight to Curb Inflation Risks
- Economists expect first of six quarterly reductions next week
- Inflation is still biggest risk to economy, survey shows
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Economists are dialing back their expectations for how far the European Central Bank will lower interest rates after it starts cutting next week, according to a Bloomberg survey.
Respondents anticipate that the first of six quarter-point reductions in the deposit rate — currently at 4% — will be announced next week. That’s one step less than they predicted before the Governing Council last set policy in April.