Market participants do not expect the ECB to lower key interest rates on Thursday. Since last month’s meeting, the Eurozone economy has gained some momentum but remains close to recession and inflation has fallen further. However, before delivering any full-blown ease the central bank will want to see June’s updated economic forecasts for confirmation that the March projections, which showed headline inflation below 2 percent and the core rate on target in 2026, are still valid. Consequently, for now, the deposit rate should be held at 4.0 percent, the refi rate at 4.5 percent and the rate on the marginal lending ... (full story)