ECB's Lane suggests ending restrictive policies, hints at potential rate cuts by 2025 if inflation target is met.

ECB's Chief Economist, Philip Lane, suggests that the bank's restrictive monetary policy should not be prolonged. He indicates that the efforts to bring inflation back to the 2% target will largely be completed by next year. Lane also hints at potential interest rate reductions by 2025, contingent on continued progress and absence of new economic risks. The ECB remains cautious, adjusting policies meeting by meeting, with a possible rate cut in December still on the table.

November 25, 2024
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