European Central Bank Governing Council: May cut interest rates again by summer.

European Central Bank board member Willy Versluys said that given the trade tensions have not exacerbated inflation in the region, the central bank may cut borrowing costs again by the summer. Versluys said in an interview with regional media outlet EBRA on Tuesday, "The protectionism of the Trump administration will lead to inflation in the United States, but not in Europe, which undoubtedly makes it possible to lower interest rates again between now and the summer." The impact of Trump's tariffs on the euro zone will shape the interest rate path of the European Central Bank. Since June 2024, the central bank has cut rates seven times. While some officials support taking action again next month and remain open to further action in the future, others urge caution, pointing out potential inflation risks ahead. The European Central Bank will hold monetary policy meetings on June 6 and July 24.