European Central Bank Meeting Minutes: The process of combating inflation is nearing its end.

On May 22, the minutes of the European Central Bank meeting showed that European Central Bank policymakers said last month that inflation in the euro area was almost contained, and even though trade routes may further trigger inflation, trade tensions may suppress prices in the short term. The European Central Bank cut interest rates last month for the seventh time in a year and warned that economic growth would be hit hard by U.S. tariffs, raising bets on further easing in the coming months. "Members said there is increased confidence that inflation will return to target in the medium term, and that the fight against inflationary shocks is nearing its end," the ECB said in the minutes. As a result, disinflationary forces are likely to dominate in the near term. "While trade tensions have largely eased since the April meeting, prevailing uncertainty continues to weigh on market sentiment, leading to firm bets that the ECB will cut rates again in June. However, some policymakers believe that the trade war will lead to inflation in the long run. "Given the devastating impact of disrupting global value chains, these commissioners believe that trade shocks are more likely to trigger inflation in the near term," the minutes added. ”