ECB minutes: If baseline forecasts remain unchanged, further gradual rate cuts would be appropriate

Odaily News The minutes of the ECB meeting showed that members are increasingly confident that inflation will return to target levels in the first half of 2025, and they believe that if the baseline forecasts for inflation are confirmed in the coming months and quarters, it would be appropriate to gradually relax the restrictiveness of policy. However, the minutes also pointed out that there are still many upside and downside risks to the inflation outlook, so vigilance should not be relaxed in the final stage of the fight against inflation. In the face of widespread uncertainty and some factors that may hinder the progress of inflation, a cautious approach is still necessary. Some members pointed out that there may be reasons to cut interest rates by 50 basis points (in December), and they tend to give more consideration to this possibility. (Jinshi)