10 mei 2024 om 15:34 Update: 44 min. geleden
The ECB’s first interest rate cut in five years is close, according to meeting documents of the European central bankers. If European inflation remains on track to fall towards 2 percent, interest rates can be lowered again in June.
Minutes of the last interest rate meeting of the ECB board in April became public on Friday. That board consists of central bankers from all euro countries. In April, after that meeting, the ECB kept interest rates unchanged at 4 percent, the highest level ever.
The ECB interest rate is important because it also affects rates for borrowing and saving at European banks. Borrowing becomes cheaper at lower interest rates. Savings interest rates may no longer rise further.
The meeting documents preceding that latest interest rate decision state that it is likely that the directors could decide on an interest rate cut in June, especially if European inflation remains on track to fall to 2 percent in 2025.
What is striking is that part of the ECB board was already ready for an interest rate cut in April. But then the time had not yet come. Economists, analysts and investors have been expecting this to happen in June for some time now. But the question remains whether the ECB really dares to do so.
“I think we will probably take the step,” Dutch ECB board member Frank Elderson also said in an interview with the news agency on Friday. Bloomberg.
