A gloomy mood in both the German and French economies is now opening up for a rate cut from the European Central Bank (ECB) in June, writes the news agency Bloomberg.
For Europe's largest and most important economy, Germany, the country's composite purchasing managers' index rose to 48.6 in May, significantly lower than analysts had expected. In France, the corresponding index rose to 48.0 compared to 47.8 the previous month. Although it was in line with market expectations, it is precisely as for the German part below the 50-line, i.e. the level that traditionally is used to indicate growth.
The ECB's most important key rate, the deposit rate, stands at 2.25 percent after the last cut in April, the same level as the Swedish Riksbank's rate.
