(Bloomberg) — European shares struggled for traction in thin trading after a European Central Bank official warned that policy will have to stay restrictive all year.
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The Stoxx Europe 600 index was little changed. Turnover was less than half the 20-day average for the time of day, with UK and US markets closed for holidays. American equity futures and the dollar were steady.
The European Central Bank is on track to start cutting interest rates next month, but will have to keep policy in restrictive territory through 2024, Chief Economist Philip Lane told the Financial Times in an interview published Monday. A rate cut in June has been widely telegraphed, but subsequent steps are less clear. Data this week may show headline inflation in the euro region ticked up in May.
“European inflation is back,” though the May spike may be temporary, Credit Agricole SA…
