European Central Bank keeps key interest rate at a record. Inflation is down, so when will it cut?

abcnews.go.com:

The European Central Bank has left its key interest rate at a record high as it waits for more confirmation that toxic inflation is under control for good

FRANKFURT, Germany — The European Central Bank left its key interest rate at a record high as it waits for more confirmation that toxic inflation is under control for good — even as high borrowing costs drag on the stalled economy.

The decision Thursday comes as central banks around the world, including the U.S. Federal Reserve, are trying to judge whether inflation has been tamed to the point that they can start cutting rates — making it cheaper for consumers and businesses to borrow, spend and invest — and avoid an economic slowdown that throws people out of their jobs.

“We are making good progress toward our inflation target,” ECB President Christine Lagarde said at a news conference.

But she underlined that “we're not there yet,” adding, «We have a mandate, we have a mission. We are determined to reach our 2% inflation target in the medium term, and we will be riveted to that.”

Market predictions for an ECB rate cut as soon as April have faded, and expectations among analysts have shifted toward a first trim in June.

Lagarde seemed to drop a hint in that direction when she said that the bank would decide its next move based on incoming economic data and that “we will have a little in April and a lot more for our June meeting.»

With recent economic data, “the pressure on the ECB to cut rates earlier has gone up,” Carsten Brzeski, chief of global macro at ING bank, wrote in an analyst note. “We still think that the ECB has good reasons to resist that pressure and to push back expectations.”

The bank cautioned in a statement that “domestic price pressures remain