Global Central Bank PolicyMonetary Policy

ECB cuts for first time since 2019

_Economics/__Global Finance

Summary

The European Central Bank cut its key rate by 25bp — the first cut since 2019 — after Eurozone inflation fell to 2.4%. President Lagarde was careful to avoid commitment to further cuts, describing it as a 'recalibration' rather than the beginning of a sustained easing cycle.

The ECB's decision, Lagarde's messaging, and what a June cut implies for the rest of the year.

Analysis of the ECB moving before the Fed and what that signals about relative economic conditions.

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