Economists: Even if inflation falls further, it is unlikely that interest rates will be significantly cut.

According to a report by Jinse Finance, the Chief Economist of the European Central Bank, Lane, stated that although most factors indicate that inflation in the Eurozone will continue to decline, there are also other factors that may push inflation higher, including tensions between the EU and the US and failed trade negotiations. When asked what this means for interest rate policy, Lane replied, “We need to find a middle ground.” “If we see further signs of inflation decline, we will respond with further rate cuts,” he added. However, the scope of the discussion is not that broad: no one is talking about significant rate cuts. “We are in a normal central bank policy area.”