European Central Bank leaves key interest rate at a record high as focus turns to timing of cuts

The question is, how much later this year. Financial markets are expecting a rate cut from four per cent as early as April, while ECB President Christine Lagarde has indicated it likely would happen this summer.

Analysts expect her to use a news conference Thursday to underline that the bank needs to see more proof that painful inflation — which has made everything from groceries to energy more expensive — has been beaten down.

Lagarde has cautioned that the bank will make decisions based on the latest figures about the economy’s health rather than making longer-term promises.