The European Central Bank (ECB) signals a possible shift away from its tight monetary policy in the summer, but maintains record interest rates for now. Despite a decrease in inflation in the Eurozone, the key interest rate remains at 4.50 percent, with the deposit rate for banks at four percent. However, the ECB hints that an easing of monetary policy may be considered in the coming months, should inflation outlooks continue to improve favorably.

Since the last interest rate hike in September 2023, which the central bank implemented to combat the rapidly soaring inflation at the time, interest rates have remained at a historically high level. Current data indicate that the inflation rate in the eurozone has fallen to 2.4 percent, which is close to the ECB's two-year target mark of two percent.

After inflation reached peak values in fall 2022, the ten interest rate hikes between summer 2022 and September 2023 took effect. The tighter monetary policy aimed to dampen demand and counteract inflation, but it also made loans more expensive and burdened the economy and private households.

Several ECB Monetary Policymakers Now Suggest that the June 6 Meeting Could Represent a Potential Turning Point, Especially as Wage Growth, a Main Inflation Driver, Has Recently Weakened and the Economy Continues to Be Weighed Down by High Financing Costs. ECB President Christine Lagarde Expressed in March the Expectation that by June Sufficient Data Will Be Available to Decide on a Rate Cut. Decisive Collective Bargaining Data and New Economic and Inflation Forecasts Are Expected at the June Meeting, Which Should Further Strengthen the ECB's Decision-Making Basis.