European Central Bank prepares for potential June interest rate cut due to slowing inflation.

European Central Bank interest-rate setters are preparing for a potential rate cut in June as inflation slows. A first cut in June has become increasingly likely, with some officials already expressing their preferences for rate reductions. With inflation slowing towards the ECB's 2% target, the bank is expected to follow the U.S. Federal Reserve and other major peers in starting an easing cycle.