According to Jinshi, ECB board member Knot said that the ECB has no reason to cut interest rates this month, but the September meeting will be 'open' and market expectations for further easing are currently appropriate. Knot said: "I don't think there will be another rate cut in July. The next meeting that is really open again will be in September." He is "satisfied" with the ECB's progress in reducing inflation, and the ECB expects to reach its 2% target by the end of 2025, but the ECB should not tolerate any further delays in rate cuts, otherwise it will exceed its expectations of returning inflation to its target level in four and a half years. The market expects one or two rate cuts this year and more than four rate cuts in the next 18 months, which means that the deposit rate will remain above 3% in the second half of next year.
