Europe’s economy has stalled. But an interest rate cut will likely have to wait for summer

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The European Central Bank has left its key interest rate at a record high even though inflation is way down from its painful double-digit peak and the economy has stalled. After the decision Thursday, ECB President Christine Lagarde suggested a much-anticipated cut to borrowing costs would likely wait until June. 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. Lagarde says the ECB is “making good progress” in pushing down inflation but that “we are not there yet.”