The European Central Bank should use bond purchases more sparingly in the future given costly side effects, Dutch central bank chief Klaas Knot said on Friday just as the ECB is starting a strategy review.

Euro zone inflation will be back at the European Central Bank's 2% target by the summer and interest rates could keep on falling to support the economy, French central bank chief Francois Villeroy de Galhau said just a day after the ECB's fourth straight rate cut.

Germany’s inflation rate declined unexpectedly this month, though remains above the target of the European Central Bank, which this week cut its key interest rate.Consumer prices were 2.3% higher in January than the first month of 2024,

Diverging signals about monetary policy from the European Central Bank and Federal Reserve this week have set the euro on a clear path for further weakness.

The European Central Bank is set to lower interest rates for a fifth meeting as inflation that’s nearing the 2% target lets officials further loosen the shackles on the economy.

During the press conference, ECB President Christine Lagarde indicated that the central bank's macro assessment had hardly changed from its December meeting. The ECB still sees the disinflationary process on track and expects a pick up in demand, though it acknowledges the near-term weakness of the eurozone economy.

Despite still elevated domestic inflation, weak growth and inflation projected at target this year strengthen the case for further rate cuts.

The ECB is expected to cut rates by 25bps to 2.75% on Thursday as inflation nears 2% and growth remains weak. Analysts see further cuts in 2025, but US trade tariffs could add uncertainty.

ECB cuts the deposit rate by a quarter point to 2.75 per cent as expected and offers little shift in tone from December as it continues to move policy away from restrictive territory

There is a persistent murmur in financial markets that the Trump administration may push through a grand bargain to weaken the overvalued U.S. dollar. But there are multiple problems here, not least Europe's likely unwillingness to play ball.

The owners of Major League Cricket franchise Washington Freedom agree a £65 deal to buy a stake in Welsh Fire in the second round of sales in The Hundred.