BY DAVID MCHUGH
FRANKFURT, Germany (AP) — The European Central Bank plans to move ahead of the U.S. Federal Reserve on Thursday in cutting interest rates, making the eurozone the biggest rich-world economy to start easing borrowing costs for businesses and consumers as the inflation that arose after Russia’s full-scale invasion of Ukraine slowly recedes.
ECB President Christine Lagarde and other officials have made it clear that a quarter-point rate cut from the current record high of 4% is more than likely when the bank’s 26-member governing council meets at the institution’s skyscraper headquarters in Frankfurt, Germany.
Lagarde said late last month that she was “really confident” inflation was under control in the eurozone, the 20 European Union countries that use the euro currency and for which the ECB sets monetary policy. Her remark and statements by other ECB officials have analysts convinced that a rate cut is a done
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