The European Central Bank is expected to cut its interest rates on Thursday, which could lead to a weaker euro as the region's monetary policy diverges from that of the United States. The ECB is comfortable with this divergence, even if it means a weaker currency that could potentially stoke inflation. Recent data shows that underlying inflation in the euro area unexpectedly rose in May for the first time in a year, adding to the concerns about lingering consumer-price pressures. The ECB's decision will be accompanied by quarterly forecasts and a press conference, which will be scrutinized for hints of future policy intentions. Money markets are currently betting on two rate reductions this year, with a small chance of a third.
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00:00 It's Benzinga and here's what's on the block.
00:02 The European Central Bank is expected to cut its interest rates on Thursday,
00:06 which could lead to a weaker Euro as the region's monetary policy diverges from that of the United
00:11 States. The ECB is comfortable with this divergence, even if it means a weaker currency that
00:16 could potentially stoke inflation. Recent data shows that underlying inflation in the Euro area
00:22 unexpectedly rose in May for the first time in a year, adding to the concerns about lingering
00:27 consumer price pressures. The ECB's decision will be accompanied by a quarterly forecast
00:32 and press conference, which will be scrutinized for hints of future policy intentions.
00:37 Money markets are currently betting on two rate reductions this year with a small chance of a third.
00:41 For all things money, visit Benzinga.com.