Euro-area inflation is expected to slow due to higher U.S. tariffs, with consumer price growth projected to average 1.9% in 2026 and 2% in 2027, slightly below previous forecasts. Economic growth for 2025 is revised down to 0.8%, increasing pressure on the European Central Bank (ECB) to cut interest rates this week. Analysts anticipate multiple rate reductions this year as the ECB seeks to counteract weaker growth and inflationary pressures from global trade disruptions
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