They say the ECB will tiptoe, rather than slash, and might cut rates only one more time this year. Inflation is down with the help of lower oil prices and ECB president Christine Lagarde expects it to start hitting its target in ‘the second half of next year’.

Inflation in France and Spain plunged below 2% — fueling predictions by investors and economists that the European Central Bank will speed up the pace of interest-rate cuts.

The European Central Bank (ECB) is likely to continue to cut interest rates at least through the first half of 2025, to a level between 2% and 3%, Dutch ECB governing council member Klaas Knot said on Tuesday.