The European Central Bank (ECB) is set to lower its deposit rate by 25 basis points to 3.5% on Thursday to combat persistent inflation, especially in the services sector where wages are rapidly rising. Despite this move, ECB officials, including President Christine Lagarde, are expected to offer little guidance on future rate cuts due to the uncertain economic outlook. Concurrently, the U.S. Federal Reserve is anticipated to begin its own rate-cutting cycle next week, following a supportive August CPI report. The dollar index has risen due to diminished chances of a 50 basis points rate cut by the Fed, further pressuring the euro. Amid these developments, the Czech central bank remains cautious, advocating for continued monetary easing but warning against large interest rate cuts due to inflation risks in the services sector.