"Eurozone Inflation Eases, Fueling Rate Cut Speculation"

Euro zone inflation unexpectedly eased to 2.4% in March, strengthening the case for the European Central Bank to consider lowering borrowing costs from record highs. The ECB is expected to acknowledge the improved outlook at its next meeting, but policymakers are unlikely to cut rates immediately, with June being seen as the next crucial meeting for policy setting. Dovish policymakers argue that weak economic growth and corporate pricing power ease price pressures, allowing the ECB to ease up on the brakes, while most agree that the deposit rate, currently at 4%, will restrict growth until it hits 3%.