ECB Chief Economist Signals Further Interest Rate Cuts

Philip Lane emphasizes the need for gradual rate reductions to support economic growth and bring inflation closer to the 2% target.

Philip Lane, Chief Economist of the European Central Bank (ECB), advocates for additional interest rate cuts to counter weak economic growth in the Eurozone.
Lane stated that monetary policy should not remain restrictive for too long to avoid hampering economic expansion.
The ECB expects inflation to move closer to its medium-term target of 2%, with significant progress anticipated in 2025.
The ECB recently reduced key interest rates by 0.25 percentage points in October, with further policy easing expected at its December meeting.
Lane also warned of potential economic disruptions in the Eurozone if U.S. protectionist policies under President-elect Donald Trump are implemented rapidly and broadly.