ECB official: ECB can keep cutting rates even if Fed slows down

Odaily Planet Daily News: ECB board member Vujcic said the ECB may cut interest rates three more times this year, even if the Fed slows down its rate cuts, but the premise of easing policy is a rapid decline in underlying inflation. Since June last year, the ECB has cut borrowing costs five times and hinted at further easing, which has left investors speculating on the speed and extent of further rate cuts. "The market expects three more rate cuts this year," Vujcic said. "These expectations are not unreasonable." However, data in the coming months will be crucial as forecasts expect a sharp drop in service sector inflation. Service sector inflation is the largest single component of the consumer price basket and a key driver of excessive price growth over the past year. "For rate cuts to become a reality, we need to see a slowdown in core inflation and service sector inflation," said Vujcic, who is seen as a moderate hawk. (Jinshi)