ECB’s Rehn: Inflation expected to hit ECB’s target in 2025

• Inflation expected to hit ECB’s target in 2025.
• Eurozone economy will grow slowly and recover gradually.
• Salary and services inflation remain persistent, maintain risk of inflation moderating more slowly than expected.
• If fresh statistics and forecast support current inflation and growth view, ECB should continue to cut rates.
• Downward direction of rates is clear and the pace depends on the data.
• We can cut in December if data and forecasts back it.
• My assessment is that we are moving towards neutral rates from restrictive rates.

This article was written by Giuseppe Dellamotta at www.forexlive.com.