The European Central Bank is almost certain to cut interest rates again on Thursday and keep all options on the table for subsequent meetings, even as the case grows for a summer pause in its year-long easing cycle.

Looking further forward, the ECB is forecasting an inflation rate of just 1.6 per cent for 2026, meaning it would undershoot its medium-term inflation target of 2 per cent.

Inflation at 1.6%; Prior Forecast 1.9% ECB Sees 2027 Inflation at 2%; Prior Forecast 2%