The European Central Bank is all but certain to cut interest rates on Thursday and is likely to keep open the door to further policy easing as concerns over lacklustre economic growth supersede worries about persistent inflation.

Consumer prices unexpectedly picked up pace in a sign inflationary pressures remain strong at the start of 2025, largely due to sharper rise in electricity prices.

The ECB is expected to drop its main lending rate from 3 per cent to 2.75 per cent, its fifth cut since last July.