According to Jinshi, ECB board member Rehn said that investors' expectations that the ECB will cut interest rates twice more this year and lower interest rates to 2.25% next year are reasonable. He stressed that while it is necessary to ensure that inflation returns to 2%, economic activity should not be excessively suppressed. Rehn believes that there is still 44 basis points of room for interest rate cuts this year, which means that there will be a second interest rate cut of 25 basis points, and then the probability of another interest rate cut is about 75%. The next interest rate cut may be in September, and the interest rate cut has been fully priced in by October.
