ECB Board Member Lane: It is reasonable to expect two more interest rate cuts this year

June 26th, Jinshi Data: European Central Bank Committee Lein said that investors’ expectations of two more interest rate cuts by the European Central Bank this year and a rate cut to 2.25% next year are reasonable. He said that while it is necessary to ensure that the inflation rate returns to the level of 2%, economic activity should not be excessively suppressed. Lein said, ‘If you look at the market data, it means that there will be two more interest rate cuts, so the interest rate will reach 3.25% by the end of this year, and the final interest rate will be around 2.25% or 2.50%. In my opinion, these are reasonable expectations.’ Investors believe that there is still room for a 44 basis point rate cut this year, which means there is a 75% probability of a second 25 basis point rate cut and a possibility of another rate cut. The next rate cut may be in September, and the rate cut in October has been fully priced in. Unlike some of his colleagues, Lein tends to make decisions on interest rates at quarterly meetings with accompanying economic forecasts, while Lein believes that each meeting is an opportunity to take further action.