It was the eighth rate cut in the past year, extending the bank’s divergence from the Federal Reserve, which has held rates steady since the end of last year.

Lagarde’s guidance that policy is “well positioned” and upbeat forecast changes suggest a pause is coming in July

The euro rose against the U.S. dollar, supported by growing sentiment that the European Central Bank (ECB) will implement only one more interest rate cut this year. This limited monetary easing is seen as a