The European Central Bank cut interest rates even though eurozone inflation is rising

in #economy6 months ago

Last Thursday, the European Central Bank cut interest rates from 4% to 3.75%. This is despite eurozone inflation ticking upwards in May to 2.6%.

Here is the graph of eurozone inflation:


source

It's a bold move. If inflation reignites, they'll end up having to raise interest rates again.

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