Deutsche Bank: As core inflation cools, the European Central Bank may lower interest rates again.

Jin10 data reported on April 1st that Vincent Stamer, an analyst at Germany’s commercial bank, stated that as signs of easing price pressures become more apparent, the likelihood of interest rate cuts in the Eurozone seems to be increasing. Data released on Tuesday showed that the annual inflation rate for March fell to 2.2% from 2.3% in February, getting closer to the European Central Bank’s target of 2%, with closely watched core inflation also cooling. This will assist European Central Bank policymakers, making them more willing to cut interest rates in the context of slow economic growth. This makes the possibility of a key rate cut in April much greater than that of pausing rate cuts. Data from LSEG indicates that the Eurozone money market expects over an 80% chance that the European Central Bank will cut rates on April 17.