According to the sources

Of Francesco CanePa

Washington (Reuters) -European Central Bank’s policymakers are becoming more secure to reduce interest rates in June, as inflation continues their lowest march, but there is little hunger for great move, they said six fountains in Reuters.

The ECB governors who meet in Washington for the International Monetary Fund and the World Bank’s Spring Meetings took stock of a weakening economy in the euro area and all over the world as an uncertainty of the rates imposed by the President of the United States, Donald Trump, puts an investment cushion.

The data outside the euro area also showed that business growth stops this month and the payment hikes are expected to make it easier.

The most important for inflation, 20% of the Trump -imposed rate on European goods had been less serious than the ECB’s modeling and the risk of retaliation by the European Union had been so far avoided.

This meant that many governors were now seeing the increasing possibilities of the eighth quarter reduction at the June 4 meeting, when the ECB would update their own economic forecasts. The ECB cut its reference rate until 2.25% earlier this month.

According to the official line of the ECB, they had an open mind, but since the decision was even more than a month and economic policy had become unpredictable since the April 2 announcement by Donald Trump.

A spokesman for the ECB refused to comment.

Trump’s movement shook the trust of investors in the north -American economy and even their status as a safe refuge in the world, causing fuel prices, as well as the dollar, to fall against the euro.

This resulted in increasing disinflational pressure in the euro area, and was concerned with the growth of high prices, even some of the most puzzled members of the ECB’s Governing Council.

However, the prospects remain foggy, with the possibility of a more fragmented world, the cheapest imports in China and the strongest domestic demand of German tax spending plans create contrasting forces.

For this reason, also the policymakers who spoke with Reuters did not see no reason today to consider a larger cut of 50 bases, which also believed that it could increase the unnecessary alarm among market participants.

(Report by Francesco CanePa; edition of Aidan Lewis)