The European Central Bank’s Governing Council will meet on June 5 for a highly anticipated interest rate decision, with markets widely expecting a 25 basis point cut to the deposit rate.
The ECB holds monetary policy meetings approximately every six weeks since its establishment in 1998, with this June meeting being particularly significant as it follows five consecutive rate cuts.
This rate decision is expected to significantly impact financial markets, especially the euro exchange rate, European bond yields, and stock markets, as investors have already priced in the anticipated cut and will be closely analyzing guidance about future policy moves.
While the meeting itself takes place behind closed doors at the ECB headquarters in Frankfurt, market participants can follow the announcement and subsequent press conference with President Christine Lagarde live on the ECB’s website at 2:30 PM CET.
Currency traders, bond investors, eurozone equity investors, and financial institutions should closely monitor this event, as the ECB’s decision and particularly any forward guidance about the potential pause in July could create substantial market volatility and trading opportunities across European financial assets.