European Central Bank Rate Cut Expectations

European Central Bank Governing Council member Gabriel Makhlouf indicates comfort with just one more interest-rate cut this year, emphasizing the need for more data to ensure inflation aligns with the 2% target. Market expectations suggest potential for two more cuts by December, with a cautious approach to rate reductions. Various ECB policymakers project potential future rate cuts based on economic data and the need for sustained inflation progress, aiming for a 'soft landing' in high-pressure financial conditions. ECB members, including Sinkus and Lagarde, hint at the possibility of additional cuts in 2024, depending on data outcomes and economic developments.