ECB holds rates but gives clear signal on starting cuts in June

The European Central Bank held interest rates steady for a fifth meeting, while sending its clearest signal yet that cooling inflation will soon allow it to commence cuts.

The deposit rate was left at a record-high 4 per cent, as overwhelmingly predicted by a Bloomberg poll in which only one of 62 economists saw a decrease.

But the Governing Council added wording to its accompanying statement flagging a reduction, should updated economic forecasts in June ...