ECB Official Advocates Continued Rate Cuts Amid Inflation Trends

According to Odaily, European Central Bank (ECB) Governing Council member Olli Rehn has emphasized the need for the ECB to persist in reducing borrowing costs, regardless of the actions taken by the U.S. Federal Reserve. Rehn stated that with inflation on a downward trajectory and growth prospects weakening, it is reasonable to continue cutting interest rates. He noted that while the direction of interest rates is clear, the extent and pace of rate cuts will depend on forthcoming data. Rehn further clarified that the ECB operates independently of the Federal Reserve, stating, "We are not the 13th regional Federal Reserve Bank; we make decisions based on our mission to maintain price stability in the euro area." Economists and investors anticipate that the ECB will implement another rate cut in less than three weeks, with economists predicting three additional cuts thereafter. Meanwhile, the Federal Reserve is slowing its pace of rate reductions.