ECB Plans Interest Rate Cut in June if Recent Trends Persist

The article titled "ECB to cut interest rates in June if things evolve 'as lately'" reports on statements made by the Vice President of the European Central Bank (ECB), Luis de Guindos, during a hearing at the European Parliament. Guindos stated that the ECB is prepared to loosen monetary policy restrictions in June if the data continues to show an improvement in inflation. He mentioned that inflation has been declining and that the ECB's projections suggest that this trend will continue, reaching the target of 2% by 2025. However, Guindos acknowledged that there are risks that could influence price developments, such as wages, productivity, labour costs, and geopolitical risks. ECB President Christine Lagarde has also hinted at the possibility of an interest rate cut at the ECB's upcoming meeting in June. The article also mentions that the Governor of the Bank of Portugal, Mário Centeno, stated that the ECB has the conditions to implement interest rate cuts this year, including in June.