With inflation down, people are talking rate cuts. The European Central Bank may say not so fast

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The inflation plaguing European shoppers has fallen faster than expected. The economy is in the dumps. And that has people talking about interest rate cuts by the European Central Bank, perhaps as soon as the first few months of next year. No rate move is expected at the bank’s policy meeting Thursday, and analysts say ECB President Christine Lagarde is unlikely to confirm any plans to cut. Like the ECB, the U.S. Federal Reserve and other central banks are running into market expectations that they will trim rates to support flagging economic growth now that price spikes have eased. But central bankers just finished drastic rate rises and want to ensure inflation is firmly contained.