ECB Expected to Cut Interest Rates Amid Inflation Worries

The European Central Bank is projected to cut interest rates again, as investors scrutinize its statements for indications of further easing. Despite a sluggish euro zone economy, persistent inflation risks continue. ECB President Christine Lagarde is likely to emphasize the need for data-driven decisions, keeping all options open for future cuts.

The European Central Bank (ECB) is expected to cut interest rates once more on Thursday. Investors will be analyzing its statements for any signs of further easing, even as inflation risks linger in the euro zone's faltering economy.

In June, the ECB lowered its deposit rate to 3.75%. With several policymakers already supporting another rate cut, the primary discussion appears to be focused on the timing of future reductions. ECB President Christine Lagarde is likely to maintain the stance that decisions will be data-driven and decided on a meeting-by-meeting basis.

Nevertheless, Lagarde may suggest that all upcoming meetings are open for potential cuts, even as more conservative members, or 'hawks,' argue for a slower pace due to ongoing inflation concerns. Investors and analysts await cues for future actions, with some forecasting another significant move by December.

(With inputs from agencies.)