ECB Meeting Minutes: Further gradual rate cuts would be appropriate if the baseline forecast remains unchanged

ChainCatcher news, according to Jinshi reports, the European Central Bank meeting minutes show that committee members are increasingly confident that inflation will return to target levels in the first half of 2025. They believe that if the inflation benchmark forecasts for the coming months and quarters are confirmed, it would be appropriate to gradually relax the restrictive policy.

However, the meeting minutes also pointed out that there are still many upward and downward risks to the inflation outlook, and therefore vigilance should not be relaxed in the final stages of combating inflation. Given the widespread uncertainty and some factors that may hinder inflation progress, a cautious approach remains necessary.

Some committee members noted that there may be reason to cut interest rates by 50 basis points in December, and they tend to give more consideration to this possibility.