Global Central Banks Monitor Inflation for Rate Cut Decisions

European Central Bank policymaker Robert Holzmann and ECB President Christine Lagarde have indicated that Middle East tensions, particularly in the wake of the Iran-Israel conflict, pose the biggest threat to a prospective interest rate cut, with a focus on potential oil price disruptions. The ECB has signaled a potential rate reduction in June, contingent on inflation trends and geopolitical developments, while also emphasizing the need for data dependency in decision-making. Meanwhile, speculation about ECB rate cuts contrasts with reduced expectations for Federal Reserve rate reductions.