Mortgage hopes dashed as US inflation throws ECB’s June interest rate cut into doubt

Market watchers say it would be ‘quite a surprise’ if ECB president Christine Lagarde does not cut rates. Photo: Alex Kraus/Bloomberg

Donal O’Donovan

A surprise rebound of US inflation has thrown the prospect of the European Central Bank interest rate cut in June into doubt.

A cut here had been seen on the markets as all-but-guaranteed, after the most recent European inflation data – but US numbers yesterday prompted investors to rethink their bets on timing of the first cut, or the scale of reduction that will happen this year.