According to Jinshi, ECB board member Kazaks said that if inflation continues to slow as expected, the ECB can continue to lower interest rates roughly in line with market expectations. The ECB cut its policy rate from its high in the euro era last week, but did not commit to follow-up actions. Kazaks believes that the road to inflation this year will be bumpy and will move sideways, but he still believes that the ECB's 2% target is expected to be reached next year. If the data continues to meet the ECB's expectations, there is a reason to cut interest rates further.
