ECB may start cutting interest rates in June

According to Jin10, Capital Economics Chief European Economist Andrew Cunningham said that the European Central Bank now seems likely to start cutting interest rates in June. Euro zone inflation unexpectedly slowed in March, as did the closely watched core inflation rate, which excludes more volatile measures such as energy and food. Services inflation remains at the same level, but this is likely due to the early Easter holidays, which should ease somewhat in April. The overall decline puts inflation on track to reach its 2% target in the second half of the year, allowing ECB policymakers to begin easing policy with a rate cut at their June meeting.