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Two key European Central Bank figures on Monday threw their weight behind the prospect of an interest rate cut next week, indicating that it is practically a done deal.
In a speech on Monday, Olli Rehn, ECB governing council member and head of Finland’s central bank, stressed that inflation in the euro area was falling in a “sustained way.”
Inflation in the euro area held steady at 2.4% in April, marking the seventh straight month it has been below 3%, despite a slight rebound in December. The figures for May are due on Friday.
“Thanks to this disinflationary process, inflation is converging to our 2% target in a sustained way, and the time is thus ripe in June to ease the monetary policy stance and start cutting rates,” Rehn said in a speech published on the website of the Finnish central bank.
“This obviously assumes that the disinflationary trend will continue and there will be no further setbacks in the geopolitical situation and energy prices.”
In a speech on Monday, Olli Rehn, ECB governing council member and head of Finland’s central bank, stressed that inflation in the euro area was falling in a “sustained way.”
Inflation in the euro area held steady at 2.4% in April, marking the seventh straight month it has been below 3%, despite a slight rebound in December. The figures for May are due on Friday.
“Thanks to this disinflationary process, inflation is converging to our 2% target in a sustained way, and the time is thus ripe in June to ease the monetary policy stance and start cutting rates,” Rehn said in a speech published on the website of the Finnish central bank.
“This obviously assumes that the disinflationary trend will continue and there will be no further setbacks in the geopolitical situation and energy prices.”
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