Finance
ECB's Rehn says inflation confidence will allow for rate cuts
Published by Global Banking and Finance Review
Posted on January 22, 2025
1 min readLast updated: January 27, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on January 22, 2025
1 min readLast updated: January 27, 2026
ECB's Olli Rehn anticipates rate cuts as inflation stabilizes at 2%, signaling a shift in monetary policy. Rates may drop from 3% to 2% by year-end.
FRANKFURT (Reuters) - European Central Bank interest rates will keep falling as policymakers are confident that inflation will stabilise at the bank's 2% target, Finnish central bank chief Olli Rehn said on Wednesday.
"We are now confident that inflation will stabilise at the target as predicted and monetary policy will stop being restrictive in the near future," Rehn said in a speech in Oulu, Finland.
Rehn noted that markets expect the ECB's deposit rate to ease from 3% to 2% by the end of the year but stopped short of endorsing these expectations, merely arguing that rates will fall and the pace will de determined meeting by meeting.
(Reporting by Balazs Koranyi; Editing by Sharon Singleton)
The main topic is the anticipated rate cuts by the ECB as inflation stabilizes at the target level.
Olli Rehn expressed confidence that inflation will stabilize at the ECB's 2% target.
Markets expect the ECB's deposit rate to decrease from 3% to 2% by the end of the year.
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