ECB To Start Rate Cuts But Sticky Inflation Clouds Path Ahead

Investors will be keenly watching to see if ECB president Christine Lagarde provides any guidance about the pace of cuts going forward (Credit: AFP)

The European Central Bank is expected to begin cutting eurozone interest rates from historic highs this week, but sticky inflation means the move is unlikely to kickstart a rapid easing cycle.

Policymakers are poised to reduce eurozone borrowing costs by a quarter percentage point on Thursday, taking the key deposit rate to 3.75 percent from its current record level.