ECB rate cut in June would bring 'psychological boost' for Irish households and businesses

A start to rate cuts in June would bring relief for Irish consumers and businesses which over the past two years faced a whole range of increased costs

Economist Jim Power said a rate cut was coming in June because it was never going be the case that “the conservative ECB” would move before then.

The European Central Bank took a step closer to its first cut in official interest rates in early summer as president Christine Lagarde said the bank was taking comfort that its record high rates was helping to rein in inflation.

The ECB had pushed interest rates to record high levels after starting out on an aggressive campaign in July 2022 after inflation had flared to levels not seen for decades across Europe.