It will mark the official end to the record fast-hiking cycle that begun after the Covid-19 pandemic as inflation soared higher.
But investors' attention looks like it has already moved on to what will happen after this June cut by the Frankfurt institution.
"Judging by the commentary from officials, there is no questioning of the wisdom of cutting rates on 6 June," said Mark Wall, ECB watcher with Deutsche Bank."Even with the upside surprise on May HICP , the ECB can argue a cut is consistent with its reaction function. The question is, what comes after June?"came in slightly higher than expected with headline inflation at 2.6% and the print for core at 2.9%.
"We see that some elements of inflation are proving persistent — especially domestic inflation, and services in particular," European Central Bank board member Isabel Schnabel said in an interview with the German public broadcaster ARD on May 16.
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