ECB Nears 2% Inflation Target Amid Uncertain Economic Outlook

European Central Bank (ECB) policymaker Peter Kazimir stated that the ECB is likely to reach its 2% inflation target in the coming months, a faster timeline than previously forecast. However, Kazimir cautioned that the broader economic outlook remains highly uncertain, largely due to volatile global conditions and trade tensions, especially those linked to U.S. tariff policies. The recent rate cuts have positioned the ECB's deposit rate near a neutral stance that no longer restricts growth, but Kazimir stressed that future policy moves cannot be predetermined. Markets are anticipating at least two additional rate cuts this year, with a possibility of a third, yet Kazimir emphasized that decisions will be guided strictly by incoming data and updated economic forecasts. The ECB remains committed to flexibility and agility as it responds to evolving risks and uncertainties. June's policy decision will be particularly dependent on new data and risk assessments.