European Central Bank Expected to Cut Interest Rates – ryan

The European Central Bank (ECB) is widely expected to cut interest rates by one quarter of a percentage point later.

The development follows the latest inflation figures, for the countries which use the euro, showing prices rose by 2.2% in march, down 0.1% on the February Rate.

In means the rise in the cost of living is now approaching the ECB’s target of 2%. That leaves the door open for the ECB to reduce interest rates.

If the bank proceeds with quarter of a percentage point reduction it would reduce its main rate from 2.5% to 2.25%.

The cut would immediately benefit tracker mortgage customers and put downward pressure on other rates.

The decision on rates, expected this afternoon, will be followed by an ECB press conference.

There will be a fate of attention on comments by the Bank’s President Christine Lagarding Regarding Economic Disruption Caused by US Tariffs and what it means for the euro zone.

The Bank’s Decision Regarding Rates Comes in a much more complicated environment after significant falls on stock markets, a drop in the value of the dollar, and alarm in the bond market after the cost of borrowing rose for the US.