Germany's inflation rate fell to 2.3% in March, the lowest since June 2021.

The decline in inflation increases the potential for the European Central Bank (ECB) to lower interest rates.

ECB President Christine Lagarde calls for more data before making a rate decision, with key meetings on April 11 and June 6.

The ECB is currently divided, balancing recession risks against inflation concerns.

Market forecasts lean towards a rate cut by June, but recent data might push for an earlier decision.

Current energy prices imply a reduced immediacy for interest rate cuts.

The April 11 ECB meeting in Frankfurt is expected to shed light on the direction of monetary policy.