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Eurozone Inflation Eases European Central Bank is on track to meet its price target
Eurozone inflation eased, with the preliminary CPI coming in at 2.4% y/y in February, down from 2.5% in January. Services inflation also fell to 3.7%, the lowest since April 2024. After the release of the data, the euro pumped 0.6% and the German bund yield rose to 2.45%. Europe's Central Bank plans to cut interest rates again to meet the price target, but the deposit Intrerest Rate is expected to continue to raise interest rates until 2%. A pause in rate hikes is possible in April 2024.
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