Odaily News The European Central Bank may cut interest rates three more times this year, even if the Federal Reserve slows down its rate cuts, but the premise of easing policy is a rapid decline in underlying inflation. Since June last year, the ECB has cut borrowing costs five times and hinted at further easing, leaving investors guessing about the pace and extent of further rate cuts. "The market expects three more rate cuts this year," Vujcic said. "These expectations are not unreasonable." However, data in the coming months will be crucial because forecasts expect a sharp drop in services inflation. Services inflation is the largest single component of the consumer price basket and a key driver of excessive price growth over the past year. "For rate cuts to be a reality, we need to see a slowdown in core inflation and services inflation," said Vujcic, who is seen as a moderate hawk. (Jinshi)