No policy action, but the ECB officially opens the door to a June rate cut. The European Central Bank just announced that it kept all policy interest rates unchanged. Inflationary pressures have further decreased, enabling the ECB to be very explicit about next steps: "if the Governing Council’s updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission were to further increase its confidence that inflation is converging to the target in a sustained manner, it would be appropriate to reduce the current level of monetary policy restriction.” This is the first time the ECB has talked about rate cuts in its official policy announcement.