The ECB last week lowered borrowing costs by a quarter point. It also raised inflation forecasts for 2024 and 2025 — a decision that has left investors in the dark as what to happens next.
More euro-area interest-rate reductions are likely if the European Central Bank’s expectations for a further slowdown in inflation materialise, according to Governing Council member Bostjan Vasle.
“If the baseline scenario is realised and the data are favourable, then we can probably expect further rate cuts already this year, and then also next year,” the Slovenian central bank chief told Finance newspaper. “Otherwise, it would be appropriate to wait some more time with further steps.”
