Kramer, chief economist at Commerzbank Research Department, said that ECB interest rate makers should be careful not to lower interest rates too quickly. The market expects that the Eurozone central bank will cut the benchmark interest rate by 25 basis points at this week's policy meeting. Currently, inflation in the Eurozone is cooling down, and economic growth is weak. However, core CPI is likely to soar again, labor markets are tight, and demand for higher wages may increase inflation. After a period of high inflation, caution is usually wise. Therefore, the ECB should stick to a restrictive monetary policy longer than usual.

Zhitongcaijing · 10/15 11:01
Kramer, chief economist at Commerzbank Research Department, said that ECB interest rate makers should be careful not to lower interest rates too quickly. The market expects that the Eurozone central bank will cut the benchmark interest rate by 25 basis points at this week's policy meeting. Currently, inflation in the Eurozone is cooling down, and economic growth is weak. However, core CPI is likely to soar again, labor markets are tight, and demand for higher wages may increase inflation. After a period of high inflation, caution is usually wise. Therefore, the ECB should stick to a restrictive monetary policy longer than usual.