Lates News

European Central Bank Executive Board member Panetta stated that if the economic expansion falls short of expectations and significantly dampens inflation, the ECB should further lower interest rates. He also emphasized that policymakers will maintain a flexible and pragmatic approach to policy-making, making judgments at each meeting based on the latest information and its impact on inflation prospects. The market currently generally expects the ECB to temporarily halt the pace of interest rate cuts. One reason is the uncertain nature of EU-US trade relations, as well as escalating conflicts in Russia, Ukraine, and the Middle East, which have increased economic uncertainty. Nevertheless, investors are still betting that the ECB will cut interest rates once again before the end of the year. Panetta reiterated the ECB's previous statement: "We are currently in a position where we can cautiously weigh our next steps."