In February, inflation in the eurozone fell to 2.6%, with the ECB likely to cut interest rates starting in June

Eurostat announced that inflation within the eurozone decreased to 2.6% in February from 2.8% in January, based on preliminary data. Economists are anticipating that the European Central Bank (ECB) will begin to lower interest rates by mid-year.
Data from Eurostat also indicated a reduction in February's core inflation rate, which is carefully monitored by the ECB and excludes the price changes of food products and energy, from 3.3% in January to 3.1%.
While inflation continues to exceed the ECB's target limit of 2%, it has substantially reduced, falling more than threefold from its peak of 10.6% in October 2022.
According to a recent survey cited by Bloomberg, economists believe that it would constitute a larger mistake for the ECB to decrease interest rates too early rather than too late.
Nearly two-thirds of those surveyed expressed that a premature reversal of the interest rate hiking cycle initiated in July 2022 to control inflation would pose a greater risk than a prolonged delay. This perspective is shared by various members of the ECB's Governing Council.
Moreover, 56% of economists are of the opinion that the ECB will avoid such an error by selecting the appropriate moment to commence easing monetary policy. They continue to forecast that the initial step towards this direction will be taken in June.
Although economists have slightly lowered their projections for monetary easing in 2024, they still believe that by the end of 2025, the deposit interest rate will reduce to 2.25%. Currently, it stands at 4%.