The European Central Bank plans to cut interest rates this week

The European Central Bank meets on Thursday, September 12, and a rate cut is widely expected.

Inflation is approaching 2% levels, and the long-term outlook is stable around 2%.

The latest data from the European economy also show the weakening of the economic outlook.

The meeting will also carry an updated macroeconomic forecast of the ECB.

Downward adjustments to inflation forecasts for 2025 and 2026 are likely, as low oil prices will play a big role here.

Attention this week will be on the interest rate decision of the eurozone, which is followed by a half-hour press conference of Christine Lagarde, the governor of the bank.