(ANSA-AFP) - FRANKFURT AM MAIN, APR 11 - The European Central
Bank held interest rates steady again Thursday but said slowing
inflation could open the door to easing monetary policy, raising
hopes of a first cut in June. It was the fifth consecutive time
the central bank has frozen borrowing costs, with the key
deposit rate sitting at a record high of four percent. The ECB
had hiked rates at a record pace to tame red-hot price rises,
but calls have been growing for cuts to begin as inflation falls
and higher borrowing costs take their toll on the 20-nation
single currency area. Eurozone inflation slowed more than
expected in March to 2.4 percent -- not far off the ECB's
two-percent target. A reduction Thursday was widely seen as
unlikely with officials having repeatedly stressed they are
waiting for more data that will only be available for their
meeting in June. But in their statement, the central bank
tweaked its language, saying most measures of underlying
inflation were easing and wage growth -- a particular concern in
recent months -- was "moderating". (ANSA-AFP).
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