ECB Officials Support Further Interest Rate Cuts

European Central Bank (ECB) officials are advocating for continued monetary policy easing through a series of interest rate cuts due to concerns about moderate growth in the eurozone and potential protectionist measures from the United States. Yannis Stournaras, a member of the ECB Governing Council, emphasized the need for gradual cuts based on economic evidence, while noting that such measures are necessary to address below-target inflation. Vice President Luis de Guindos echoed this sentiment, indicating that the ECB has made progress on inflation but is now cautious about low growth risks. The ECB has already reduced rates four times recently, and investors are anticipating further cuts in the upcoming months. Guindos stated that the policy direction is clear and that the economy appears to be losing momentum, necessitating a less restrictive monetary policy. Overall, the ECB is balancing the need for ongoing rate reductions while remaining vigilant about economic uncertainties.