It is too Soon to Declare Inflation Victory

ECB's Martins Kazaks says it's too soon to declare euro-area inflation has been vanquished. Governing Council member Kazaks said the ECB is on track to deliver a first interest-rate cut in June. Kazaks: It's still too early to declare that euro inflation is vanquished, even if the ECB drops interest rates.

European Central Bank Governing Council member Klaas Knot says energy prices pose less acute danger to inflation. Knot: Jump in energy prices poses less acute risk to inflation in Europe than commodities markets seen in recent years. He says the gyrations in commodities markets have been seen over the past few years.

Executive Board member Piero Cipollone sees policy easing if inflation slowdown persists. Cipollsone: ECB may be able to loosen its monetary-policy stance if the slowdown in consumer-price growth persists. The European Central Bank may loosen its policy stance if inflation continues to rise.

Governing Council member Mario Centeno says the European Central Bank should start lowering interest rates soon. Centeno: “It’s about time to change.” The ECB should lower interest rates, Centeno said in a statement. The European Monetary Policy Council member is a member of the ECB's governing council.

Inflation in the 20 nations sharing the euro currency slowed to 2.4% last month from 2.6% in February. The fall reinforces expectations for a European Central Bank interest rate cut in June. Rising energy costs and a weak euro cloud the outlook, according to Eurostat.

Makhlouf says June ECB Cut Possible If Inflation Trend Persists. ECB should be able to cut interest rates at its next meeting if trend in inflation persists, he says. Governing Council member Gabriel Makhrouf says ECB could cut rates at next meeting.

Italian inflation steadies as markets eagerly await ECB rate cut. Drop in energy prices brings monthly inflation to a lower-than-expected rate. Annual inflation also cools on an annual basis as price increases also cool on a year-on-year basis. Italian inflation stabilises as markets eager to see ECB rate fall.

Former President of the European Central Bank Jean-Claude Trichet joins Yahoo Finance to discuss the ECB's decision to hold interest rates steady. He says the central bank is "going in a good direction" on its efforts to combat inflation. Triche says the expectation of a June rate cut is "not a done deal," as there are many factors that could shift expectations.

Stocks remain under pressure on speculation the Federal Reserve will keep policy on hold. Euro falls as the European Central Bank holds rates and firms the path to a first cut in June. Stocks hit by inflation woes; Euro Falls after ECB firmed the path for a cut in rates.

Once humiliated by inflation, the ECB is now saying it was right all along. The battle for the narrative has swung again, now that prices are (nearly) behaving themselves. The ECB now says it was wrong all along, and that inflation is now behaving well.

Eurostat data for March 2024 revealed a drop in annual consumer price inflation to 2.4%, below the expected 2.6% and hitting a four-month low. Market foresees four ECB rate cuts by end-2024, with the first expected in June.

Governing Council member Mario Centeno says ECB will act as inflation retreats toward its 2% target. Centeno: Policy will react to the 2% retreat in inflation, and will act when it retreats to 2%. ECB member: Policy must react to a retreat toward 2% inflation target.