ECB/Rehn: It is reasonable to expect two more rate cuts this year

European Central Bank (ECB) member Rehn sees two more rate cuts in 2024 as reasonable. Olli Rehn, a member of the Governing Council of the European Central Bank and president of the Bank of Finland, said investors’ expectations that the European Central Bank will ease monetary policy twice more this year and reduce borrowing costs to 2.25% in 2025 were reasonable. Rehn also said authorities should ensure inflation returns to 2% but should not overly restrict economic activity. “If you look at market data, that means there will be two more rate cuts and we will reach 3.25% by the end of this year and the final interest rate will be around 2.25%, 2.50%. I think those are reasonable expectations,” Rehn said. The ECB began cutting interest rates this month after historic hikes to rein in the eurozone’s worst-ever inflation. Authorities are wary of what to expect amid the recent rise in consumer prices, persistently high wage increases and geopolitical frictions.