Charting the Global Economy: ECB Holds, UK Tilts Toward Rate Cut

The European Central Bank left interest rates unchanged, while President Christine Lagarde downplayed a recent rally in the euro and maintained that inflation as broadly balanced.

In the UK, central bankers came within a vote of lowering interest rates and predicted inflation will fall below its target, a closer-than-expected decision that revived hopes the Bank of England will cut next month.