The case for the European Central Bank (ECB) cutting interest rates in June is getting stronger and is gaining more traction.This has come about as a result of services inflation, which is finally starting to ease, ECB chief economist Philip Lane told Spanish newspaper El Confidencial.

The ECB has all but promised a rate cut on June 6, provided incoming data strengthen policymakers’ belief that inflation will head back to its two per cent target by the middle of next year.

During the interview, Lane explained, “Both the April flash estimate for euro area inflation and the first quarter GDP number that came out improve my confidence that inflation should return to target in a timely manner. So, as of today, my personal confidence level has improved compared with our April meeting.”

Lane reported that more crucial data is still to be published in the weeks ahead noting that Investors also seem to think that a cut in June is all but a done deal.

The ECB chief economist has noticed doubts about subsequent moves, which have increased in recent weeks after the U.S. Federal Reserve signalled that its own policy easing could be delayed.