The ECB said that the cycle of interest rate cuts is almost complete. There are risks of growth
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The European Central Bank (ECB) is almost, if not already, completing its cycle of interest rate cuts, ECB Governing Council member and head of the Central Bank of Slovakia Peter Kazimierz said, Bloomberg reports.

"Looking ahead, I continue to see clear risks to growth, as well as uncertainty about future price dynamics," Kazimierz noted.

Last week, the ECB cut its deposit rate to 2%, saying that inflation, which fell to 1.9% in May, "is currently close to the target."

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ECB President Christine Lagarde stressed that ECB policy is "well positioned to respond effectively to the volatility" caused by global trade shifts and rising costs in Europe.

Kazimir added that data coming in over the summer will help to understand whether further monetary policy adjustments are needed.

"We lowered rates to reach a neutral level without jeopardizing our ability to respond if inflation starts to rise again," Casimir wrote.

  • The ECB rate cut began in June 2024 after it rose to a record high in response to abnormally high inflation (caused by Russia's full-scale aggression against Ukraine).