The European Central Bank cut its key interest rate on Thursday to boost an economy that’s struggling to grow as consumers burned by inflation warily eye price tags and businesses try to navigate political turmoil in leading economies France and Germany.

The Fed will likely be on a more hawkish path, so significant divergence from the ECB could risk flight of capital towards the Dollar.”

The European Central Bank is widely expected to cut interest rates for the fifth time since it began easing monetary policy.

The European Central Bank (ECB) is expected to cut key interest rates again on Thursday in what would be the fifth rate cut in the eurozone since mid-2024. Economists expect the central bank to cut the key deposit rate - the interest that banks receive for parking funds at the ECB - by 0.