Euro currency watchdogs are postponing hoped-for interest rate cuts. The ECB expects an inflation rate of 2.3 percent for the current year.
Inflation in Germany reached 2.5 percent in February, the lowest level since June 2021. In July 2022, the ECB ended the years of zero and negative interest rates in order to get inflation, which had temporarily reached record levels, under control. The central bank raised interest rates ten times in a row. The fact that loans therefore cost more can slow down demand and counteract high inflation rates.