European Central Bank policymakers hailed victory over runaway inflation on Friday even as some warned that it was now at risk of going too low, rekindling memories of anaemic price growth in the pre-pandemic decade.

The ECB is cutting rates tomorrow, full stop. Traders are already treating the decision as done, with a 99% probability priced in for a 25 basis point trim.

Most ECB policymakers back keeping interest rates, now at 2%, on hold at their next gathering in July, or possibly longer, depending in part on the prospects for trade with the United States, sources told Reuters.