Europe’s inflation is way down. But hope is gone for a quick interest rate cut

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — Europe’s outburst of inflation is receding. But a cut in interest rates from a record-high 4% is not going to happen at Thursday’s European Central Bank meeting. And it may even have to wait until summer. ECB President Christine Lagarde is likely to stress Thursday that the bank wants to see more evidence that the inflation beast has been tamed before cutting rates. Inflation was down to 2.6% in February, but the consumer price index has been stuck between 2% and 3% for five months, raising concern that the last mile toward the ECB’s goal of 2% may be slower than hoped.