Inflation is down in Europe but ECB in no hurry to make more rate cuts
High rates aim to squelch inflation by making it more expensive to borrow money to buy goods or invest in new factory equipment.
In June, inflation in the eurozone slightly eased to 2.5%, down from 2.6% in May but still above the European Central Bank's preferred target. Services prices remained high at 4.1%. The ECB is cautious about further rate cuts after a recent small reduction, wary of potentially stubborn inflation. Similar concerns are echoed by the U.S. Federal Reserve, both aiming to balance controlling inflation without stalling economic growth.
