Jack Allen-Reynolds, a macro analyst at KITU, wrote in the report that due to the high inflation rate in the service sector, the ECB may only cut interest rates slowly. Eurozone inflation rose to 2.4% last month, according to Tuesday's data. Among them, the much-publicized service sector inflation rate also climbed to 4.0% from 3.9% previously. Allen-Reynolds said this will not stop the ECB from cutting interest rates further, “but at least for now, the service sector inflation rate seems to remain around 4%, which means that ECB policymakers will be cautious and would rather cut interest rates in units of 25 basis points rather than act faster.”

Jack Allen-Reynolds, a macro analyst at KITU, wrote in the report that due to the high inflation rate in the service sector, the ECB may only cut interest rates slowly. Eurozone inflation rose to 2.4% last month, according to Tuesday's data. Among them, the much-publicized service sector inflation rate also climbed to 4.0% from 3.9% previously. Allen-Reynolds said this will not stop the ECB from cutting interest rates further, “but at least for now, the service sector inflation rate seems to remain around 4%, which means that ECB policymakers will be cautious and would rather cut interest rates in units of 25 basis points rather than act faster.”