ECB officials hinted at additional rate cuts later this year, following recent monetary policy decisions. Francois Villeroy de Galhau, French central bank chief and ECB governing council member, described market expectations for future rate decisions as "quite reasonable" during a BFM Business interview on Friday.
In June, the ECB lowered the key interest rate for the first time since the major inflation surge and kept rates unchanged in their latest meeting. The ECB emphasized that future rate adjustments depend on data, with no predetermined path.
Lithuanian central bank head and ECB member, Gediminas Simkus, agreed with the market's forecast of two more rate cuts by year-end, citing a clear downward trend in Eurozone inflation. "There's no doubt the September rate cut will be discussed," he told reporters on Friday.
Currently, financial markets anticipate a 0.25% rate cut in September and another similar cut by year-end. However, Bloomberg reported that some ECB members see only one more rate cut as justifiable this year.