The euro zone's central bank held interest rates steady for a fifth straight meeting.
Christine Lagarde, president of the European Central Bank , at a rates decision news conference in Frankfurt, Germany, on Thursday, March 7, 2024.The European Central Bank on Thursday held interest rates steady for a fifth straight meeting, as anticipation builds for rate cuts in June.
"If the Governing Council's updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission were to further increase its confidence that inflation is converging to the target in a sustained manner, it would be appropriate to reduce the current level of monetary policy restriction," it said in a statement.
Policymakers and economists have zeroed in on June as the month when rates could start to be reduced, after the ECBThe ECB on Thursday said incoming information had "broadly confirmed" its medium-term outlook, with falling inflation led by lower food and goods. June will also be the first month when policymakers will have a full set of data on first quarter wage negotiations — an area of concern for potential inflationary effects.In comments reported by Reuters, Sweden's central bank Deputy Governor Per Jansson on Thursday said that if the U.S. Federal Reserve rules out rate cuts in 2024, it could present a "problem" for both the Riksbank and the ECB.
In the case of the Riksbank, this would be due to the weakening of the Swedish krona fueling inflation, Jansson
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