ECB Economists Warn Against Early Interest Rate Cuts

European Central Bank Chief Economist Philip Lane said that efforts to return inflation to the target level of 2% are not over yet, and that interest rates should remain as high as necessary to achieve this goal without causing excessive harm to the economy.

According to Al Arabiya, Lane indicated that the return of inflation to the target level must be sustainable.

For his part, ECB Governing Council Member Robert Holzmann warned against cutting interest rates too early, stressing the need to carefully analyze economic data before making any decision on monetary policy.

He added that the issue of cutting interest rates is not yet settled, and a cut may not happen next month.