According to Jinshi, Panetta, the executive board member of the European Central Bank, said that the European Central Bank should not worry too much about stubborn service sector inflation and strong wage growth. Panetta reiterated at the annual meeting of the Italian Banking Association that recent data and prospects allow for further gradual reductions in borrowing costs.

Earlier, although the euro zone's inflation rate fell slightly to 2.5% in June, service sector inflation remained stable at 4.1%. Such price pressures have made some ECB officials cautious about committing to further rate cuts after the first rate cut last month.