The ECB is preparing for a new stage of rate cuts

The European Central Bank (ECB) will almost inevitably decide to lower interest rates at a meeting scheduled for January 30. After that, several more stages of monetary policy easing are expected. This opinion was expressed by Peter Kazimir, a member of the ECB Governing Council.

According to him, the current economic situation demonstrates a stable continuation of the rate of interest rate cuts by a quarter of a percentage point. However, increased economic instability requires the ECB to be more flexible in order to respond promptly to changes in circumstances, if necessary.

Kazimir noted that a consistent reduction in rates in three or four stages is quite possible. Nevertheless, he stressed that full control over the course of events is unattainable, and the regulator continues to adapt to new challenges. At the same time, the politician expressed confidence in the correctness of the ECB's strategy, which is aimed at achieving the 2% inflation target.

It is worth recalling that in December last year, the ECB already cut rates by 25 basis points. As a result, the deposit rate was set at 3%, the base rate was 3.15%, and the marginal loan rate reached 3.4%.