ECB: Wage growth slows is necessary to reduce interest rates in the euro zone

Kalash Knut, a member of the European Central Bank’s Governing Council, said on Sunday that the bank would need to see evidence of a slowdown in wage growth in the euro zone before it would cut interest rates.

According to Reuters, Dutch Central Bank Governor Knut said in an interview broadcast on Dutch television, “We now have a reasonable possibility that inflation will return to 2% in 2025. The only missing link is the conviction that wage growth will adapt to this low inflation.”

“Once the remaining piece of the picture is in place, we will be able to lower interest rates a little,” he added.