The European Central Bank (ECB) is expected to cut interest rates by a quarter percentage point today to combat a weakening eurozone economy affected by trade tensions. This would mark the eighth rate cut within a year and follow a drop in inflation below the ECB's 2% target. Markets anticipate a near certainty of this cut due to ongoing declines in inflation and dovish signals from ECB members. Moreover, Central Bank president Christine Lagarde may face questions regarding her leadership and the euro's role in the global market during these turbulent times.
The European Central Bank is expected to cut interest rates today in response to falling inflation and the effects of Donald Trump's trade wars on the eurozone economy.
With inflation dropping below the ECB's target, the likelihood of a quarter-point cut has reached almost 100%, as markets adjust to ongoing economic pressures.
Christine Lagarde's potential shift in role and the ECB's growth and inflation forecasts will also be focal points, amidst speculation of a pause in rate cuts this summer.
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