Amid a broad if increasingly muted deflationary trend over the first months of 2024, the European Central Bank (ECB) has opted to stay put with its 4.5% interest rate at its policy meeting this week.

The lack of a cut comes as no surprise to the majority of investors, as inflation reductions across the continent have yet to calm the ever-inflation-averse officials of Germany and other major European economies, let alone their publics. Though the above graph highlights how inflation has dipped dramatically since its post-COVID highs, price levels have yet to settle into the sub-2% comfort zone in France, Germany, or Spain.