According to Jinshi, Franziska Palmas, European economist at Capital Economics, said that the European Central Bank may start a series of interest rate cuts from June due to weakening business confidence in the eurozone. The monthly survey released by the European Commission on Monday showed that overall economic sentiment unexpectedly declined this month due to declining confidence in industry and services, while consumer confidence showed little improvement. Palmas said that this is a reminder that despite some recent signs of improvement, the eurozone economy remains weak, "so a rate cut in June still seems to be a foregone conclusion, and further rate cuts are likely thereafter."
