European Central Bank keeps key interest rate at a record. Inflation is down, so when will it cut?

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The European Central Bank has left its key interest rate at a record high as it waits for more confirmation that toxic inflation is under control for good. The decision Thursday comes even as high borrowing costs drag on the stalled economy. Central banks around the world, including the U.S. Federal Reserve, are trying to judge whether inflation has been tamed to the point that they can start cutting rates and avoid an economic slowdown that throws people out of their jobs. Market predictions for an ECB rate cut as soon as April have faded. Expectations among analysts have shifted toward a first trim in June.