European Economic News Preview: ECB Set To Cut Rates By 25 Bps

(RTTNews) - The European Central Bank is widely expected to cut its key interest rates on Thursday, ending the rate hiking cycle that began in mid-2022.

At the governing council meeting in Frankfurt, policymakers are set to lower the main refinancing rate, the deposit facility rate and the lending rate by 25 basis points each.

Following the meeting, ECB Chief Christine Lagarde holds press conference at 8.45 am ET.

Factory orders and construction Purchasing Managers' survey results from Germany and retail sales from the euro area are the other major economic reports due today.

At 1.45 am ET, Switzerland's unemployment data is due. The jobless rate is seen unchanged at 2.3 percent in May.

At 2.00 am ET, Germany's statistical office is scheduled to issue Germany's factory orders data for April. Orders are forecast to grow 0.6 percent on month, in contrast to the 0.4 percent fall in March.

At 3.00 am ET, Spain's INE publishes industrial production data for April. Economists forecast output to rebound 0.8 percent in April, in contrast to the 1.2 percent decrease in March.

At 3.30 am ET, S&P Global is scheduled to release Germany's construction Purchasing Managers' survey data.

At 4.00 am ET, Italy's retail sales figures are due for April. Sales are forecast to expand 0.3 percent after stagnating in March.

At 4.30 am ET, UK S&P Global construction PMI survey results are due. The construction PMI is seen falling to 52.5 in May from 53.0 in April.

Half an hour later, Eurostat releases euro area retail sales and employment data. Sales are forecast to fall 0.2 percent on month in April, in contrast to the 0.8 percent increase in March.