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Investing.com -- The European Central Bank (ECB) is almost finished with its current cycle of interest rate reductions, according to Peter Kazimir, a policymaker from Slovakia. Kazimir suggested on Monday that the ECB should monitor data throughout the summer to determine whether minor policy adjustments might be required.
Last Thursday, the ECB implemented its eighth rate cut, marking its most rapid policy easing cycle since the global financial crisis of 2008/2009. The bank has signaled that it may now pause on further cuts.
Currently, the ECB’s deposit rate is at 2%, and investors are anticipating only one more reduction, which would bring the rate down to 1.75% by the end of the year.
Kazimir expressed his belief that the easing cycle is nearing its conclusion, if it hasn’t already ended. He shared these thoughts in an opinion piece.
Kazimir also noted that while economic growth might be weaker than expected, it would be an error to overlook the potential risks of higher-than-expected inflation, which is the ECB’s primary concern.
Kazimir stated that data collected over the summer will offer a clearer picture and will help guide decisions on whether additional slight adjustments to the policy are necessary.
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