ECB seen making fewer rate cuts in fight to curb inflation risks

Communicating the ECB’s intentions without locking in a specific scenario may — once again — be the biggest challenge for Lagarde

Hawks like Executive Board member Isabel Schnabel and Bundesbank President Joachim Nagel want to wait until September before considering a second move, and economists reckon a hesitant Fed will limit the ECB’s room to maneuver. (AP Photo/Michael Probst)

Economists are dialing back their expectations for how far the European Central Bank will lower interest rates after it starts cutting next week, according to a Bloomberg survey.

Respondents anticipate that the first of six quarter-point reductions in the deposit rate — currently at 4% — will be announced next week. That’s one step less than they predicted before the Governing Council last set policy in April.