The ECB noted the approach of inflation to the target

According to the ECB's chief economist Philip Lane, the latest statistics on the eurozone economy increase confidence that the inflation rate in the region is approaching the 2% target.

The preliminary report of the statistical office of the European Union, published last week, showed that inflation in the eurozone in April remained at the level of March and amounted to 2.4%. Lane noted that for the first time since November last year, there was a slowdown in inflation in the service sector, which, in his opinion, represents an important first step in the next phase of weakening inflation.

Inflation excluding the cost of food and energy in April slowed to the lowest level since February 2022, amounting to 2.7%. Eurozone GDP in the first quarter increased by 0.3% compared to the previous three months and by 0.4% year-on-year, which is the highest since the third quarter of 2022.

Traders expect a reduction in key ECB interest rates at the June meeting, but are not sure about further steps to ease monetary policy. Currently, the base rate on ECB loans is 4.5%, the deposit rate is 4%, and the rate on margin loans is 4.75%.