ECB ‘will wait until June to cut interest rates’

The ECB will wait until its June meeting to cut interest rates, although a move to boost SME lending could be announced at its May meeting, according to Brussels-based chief economist with ING Bank Carsten Brzeski.

Speculation has been growing over the past few months that the ECB would loosen monetary policy even further in an attempt to spur growth in the eurozone economy.

Mr Brzeski argues that the ECB will wait until the June meeting to drop interest rates by another 25 basis points to 0.5% because that is when it is scheduled to release its next quarterly review of the economy. Inflation across the region is averaging 1.7%, which is its lowest level in three years.