The European Central Bank is expected to cut interest rates twice more this year, said Finnish central banker and Governing Council member Olli Rehn.
“If you look at the market data, it is clear that two more declines are likely interest rate this year and therefore we will end up at 3.25% percent at the end of this year and finally somewhere around 2.25%-2.50 in 2025¨, emphasized Olli Rehn in an interview with Bloomberg in Helsinki. “Therefore, investor expectations are reasonable in our opinion,” he added.
The head of Finland’s central bank said the ECB needs to ensure inflation falls to 2% but must not slow the economy too much.
In the last two weeks, markets have renewed bets on a 45 basis point cut in euro zone rates by the end of the year.