Odaily planet daily news European Central Bank Sentral committee Vujcic said, European Central Bank Sentral may lower interest rates three times this year, even if the pace of the Federal Reserve's rate cuts slows, but the premise of loose policy is rapid decline in underlying inflation. Since June last year, the European Central Bank Sentral has cut borrowing costs five times and hinted at further loosening of policy, leading investors to speculate 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, the data in the coming months will be crucial, as forecasts suggest that service sector inflation will decline significantly. Service sector inflation is the largest single component of the consumer price basket and a key driver of excessive naik in prices over the past year. "To make rate cuts a reality, we need to see core inflation and service sector inflation slowing down," said Vujcic, seen as a moderate hawk.
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Pejabat Bank Sentral Eropa: Meskipun Federal Reserve melambat, Bank Sentral Eropa dapat terus menurunkan suku bunga
Odaily planet daily news European Central Bank Sentral committee Vujcic said, European Central Bank Sentral may lower interest rates three times this year, even if the pace of the Federal Reserve's rate cuts slows, but the premise of loose policy is rapid decline in underlying inflation. Since June last year, the European Central Bank Sentral has cut borrowing costs five times and hinted at further loosening of policy, leading investors to speculate 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, the data in the coming months will be crucial, as forecasts suggest that service sector inflation will decline significantly. Service sector inflation is the largest single component of the consumer price basket and a key driver of excessive naik in prices over the past year. "To make rate cuts a reality, we need to see core inflation and service sector inflation slowing down," said Vujcic, seen as a moderate hawk.