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Investing.com -- Policymakers from the European Central Bank (ECB) are reportedly seeing an increased likelihood of a temporary halt in their easing cycle at their upcoming meeting, before another round of rate reductions. The pause is being considered to allow for more clarity on trade and fiscal policy, according to Reuters, citing information provided by four sources.
Thursday, the ECB followed expectations by lowering interest rates. However, ECB President Christine Lagarde did not echo her previous indication that the trend towards lower rates was clear. This departure from her usual messaging led to some uncertainty among investors.
Following the meeting, the sources indicated that a pause in April was distinctly possible, a topic that had been informally discussed during breaks in the two-day meeting. These sources represent both the dovish and hawkish factions within the ECB’s Governing Council.
Despite the potential for a pause, there was consensus among the sources that the ECB is unlikely to maintain its deposit rate at 2.5%. They agreed that further cuts were justified, based on the information currently available.
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