1960bingo| ECB Governing Council: Inflation may still remain stubborn and may not continue to cut interest rates after June interest rate cuts

Financial Associated Press, April 25 (Editor Xia Junxiong) Wednesday (April 24), local time1960bingoJoachim Nagel, president of the Bundesbank and a member of the ECB's governing board, said inflation in the eurozone could still be stubborn, so the ECB would not necessarily ease policy further after cutting interest rates in June.

The refinancing rate, deposit mechanism rate and marginal lending rate of the three key interest rates in the euro zone are currently 4. 5% respectively1960bingo.50%, 4.00% and 4.75%. The ECB is widely expected to cut interest rates at its June meeting, becoming the first major global central bank to start a cycle of interest rate cuts.

ECB officials do not have much objection to the rate cut in June, but remain cautious about the policy path that follows.

Mr Nagel, who attended the DZ Bank capital markets conference in Berlin on Wednesday, said he would support a rate cut in June if economic data ahead of the June interest rate meeting could boost policy makers' confidence in meeting the 2 per cent inflation target.

However, Nagel then changed his words: "however, this move is not necessarily followed by a series of interest rate cuts."

"given the current uncertainty, we cannot predetermine a specific interest rate path," he explained. "

The comments are the most cautious among ECB officials, with many other policymakers widely acknowledging that further easing after June is still more likely, even if they are reluctant to commit to a specific timetable.

Mr Nagel said he was not sure that inflation would return to its target in a timely and sustained manner and that core inflation remained high, especially in the service sector, which was more stubborn than commodity inflation under the influence of continued strong wage growth.

However, Nagel also stressed that policy makers will know more about the inflation path by June.

Louis de Guindos, vice president of the European Central Bank, said on Tuesday that if there were no surprises, the ECB would cut interest rates at its June interest rate meeting, but would need to be very cautious about follow-up policy actions and take into account the Fed's progress in reducing inflation.