Inflation in Europe has decided to take a chill pill, easing to an annual 2.4% in February. This fresh reading is giving the European Central Bank (ECB) all the feels for another interest rate cut, despite the economy’s ongoing struggle to find its groove.

According to Eurostat, the February figure is a slight drop from January’s 2.5%. Energy costs are finally relaxing, but let’s not pop the confetti yet, especially since France is only at a cozy 0.9%. As much as we enjoy low inflation rates, the reality is that the economy still feels more like a hamster on a wheel than a roaring engine.

So why is everyone holding their breath? The ECB is expected to cut the benchmark rate by a quarter point, bringing it down to 2.5%. In theory, this should make it easier for folks to dip into their wallets, really hoping your bank account is as excited for this as the policymakers are. This move comes on the heels of a stagnant eurozone that left everyone wondering if anyone was actually spending money.

As everyone nervously watches the upcoming ECB meeting, the big reveal will be bank President Christine Lagarde’s hints about how aggressively they might cut rates. Though inflation has cooled significantly from its sizzling peak of 10.6% back in October 2022, some price pressure remains. Just remember that haircut you regret? Yeah, those costs are still at 3.7%.

Concerns around growth aren’t exactly easing, either. With no single party in France holding a majority and potential new tariffs from the U.S. under President Trump, the business community is feeling like a cat on a hot tin roof. Recent surveys suggest the eurozone economy has barely eked out growth in February, which isn’t particularly thrilling news.

As Isabel Schnabel, an executive board member of the ECB, hinted recently, we might be entering a new phase where inflation risks can’t be ignored. The talk on the street is that the days of easy rate cuts could be behind us, leaving us wondering if the party is over before it even started.

At this stage, all we can do is wait and watch. Will the ECB give us actionable financial insights at their meeting? Or will we just be left with more questions? Stay tuned.