European Central Bank (European Central Bank)teeth, inflation Across Eurozone The minutes showed that interest rate cuts would continue despite concerns remaining following last month's cut amid an unexpected economic downturn. European Central BankThe latest meeting was reported by Reuters on Thursday.
At the June 6 meeting, European Central Bank The Bank of Japan decided to cut its key interest rate by 25 basis points, a move that was expected based on prior indications, but the timing of further cuts was unclear. inflation By next year, it will be close to the 2% target.
of European Central Bank It indicated that no interest rate adjustments would be made at the July 18 meeting. inflation Pressures in the services sector are mounting, but further rate cuts remain a possibility in September.
“Some members expressed concern that data since the last meeting did not strengthen confidence in reaching the 2 percent target. inflation This suggests that the rate cut may not be entirely in line with the data-dependent principle, and argues for maintaining current interest rates.” the meeting minutes revealed.
However, despite these reservations, European Central Bank All committee members, except for Austrian central bank president Robert Holzmann, ultimately supported the June rate cut.
Several European Central Bank Members noted that wage growth had been stronger than expected; inflation This is more persistent than expected and indicates that risks are trending upwards. inflation This is a higher level than initially predicted.
“This implies the need for continued flexibility and may lead to continued upward pressure on prices even if wage growth lags. inflation Targets can complicate fixation efforts inflation Hopes for the future,” Several European Central Bank Members agreed at their June meeting.
of European Central Bank ” he indicated.Most members“Expressed continued or increased confidence. inflation By the end of 2025, we will be on track to reach the 2% target.
Financial markets are currently expecting a further interest rate cut of about 43 basis points for the remainder of this year, with two further cuts of 25 basis points each, amounting to about 110 basis points, or four to five cuts, by the end of 2025. European Central BankThe proposal to raise deposit interest rates from the current 2.75% to a range of 2.0% to 2.5% has been met with criticism from many.neutral“Monetary Policy Stance”
The big concern is inflation,this is European Central BankThere is little confidence that the 2% target can be achieved by the end of 2025. High wage growth and a tight labour market are fuelling concerns about continued upward pressure on incomes and the domestic economy. inflation Within the euro area.
Despite these concerns, the multiyear wage agreement negotiated by the unions provides for wage growth to slow to a more moderate 3 percent growth rate from the recent 5-6 percent rate. European Central Bankof inflation the goal.
of European Central Bank We will continue to closely monitor economic data and balance the need for supportive monetary policy with the goal of achieving sustainable economic growth. inflation In the medium term, interest rates will rise.
