The European Central Bank meets on Thursday amid low inflation and a possible downward shift in interest rates, as market expectations focus on the timing of the cut. Forecasts suggest a downward revision of inflation, which may lead to an adjustment of the interest rate. Despite the elasticity of economic sentiment, June appears as a possible schedule for lowering European interest rates, depending on economic data.
Today, Allianz economist Ludovic Supran said on Bloomberg TV that the United States should set the tone.
The ECB will find itself in a bind this year if it ends up cutting interest rates without the US Federal Reserve doing the same, he said. As eurozone policymakers head towards action in June or even July, they also have to keep an eye on the world's largest economy because of its dominance of the global financial system.
Especially after the Fed member Kashkari stated that this year may see only one reduction.
