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The ECB allows for a reduction in rates below the neutral level


April, 28 2025
watermark Economic news

The representative of the European Central Bank, Olli Rehn, admitted the possibility of lowering interest rates below the neutral level. This statement indicates a potential adjustment of monetary policy in a changing economic environment. 


Rehn also drew attention to the downward trend in underlying inflationary pressures, noting that the trade duties imposed by the United States increase rather than weaken the risks of deflation. At the same time, specific details regarding a possible revision of the interest rate and the timing of implementation were not announced.


Rehn's remarks point to a possible revision of the ECB's strategy, dictated by global economic uncertainty. Lowering the interest rate is considered as a preventive measure to reduce the risks of an economic downturn and stabilize inflation. However, it is not yet clear about the details of this step, including the extent of the rate reduction and the timing of its implementation.


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Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.