ECB Keeps Rates Unchanged, Lowers Growth Forecasts Slightly; Emphasizes Data-Driven Policy and Long-Term Inflation Target

• ECB kept interest rates unchanged in March, noting falling inflation; now expects inflation to reach 2% target by 2025 • Growth projections lowered to 0.6% in 2024, but rebound to 1.5-1.6% expected in 2025-2026 • ECB emphasizes data-dependent approach to policy based on economic conditions and inflation • Markets expect future ECB rate cuts, reacting with euro decline, bond yields drop, equity indices rally • Awaits Lagarde remarks at 1445 CET as investors digest latest policy decision and projections