Inflation in France and Spain slows more than expected, supporting the European Central Bank's interest rate cut

Inflation rates in France and Spain were lower than expected, supporting expectations for an interest rate cut by the European Central Bank. France's March CPI year-on-year increase remained at 0.9%, while Spain's CPI fell to 2.2%. European bond yields declined, and traders increased their expectations for an interest rate cut by the European Central Bank, pricing in a total of 60 basis points. The data provides early signs of European price trends, which will influence the interest rate decision on April 17. Inflation in France has been below target for seven consecutive months, and the slowdown in Spanish inflation is mainly due to falling electricity prices