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ECB May Be Able to Cut Rates Gradually, Wunsch Tells Nikkei
The European Central Bank may be able to keep cutting interest rates as inflation eases and could ultimately lower them to “somewhere close to 2%,” Governing Council member Pierre Wunsch told Nikkei in an interview. If inflation slows to target earlier than expected, officials can justify “reducing rates in a gradual manner,” he was cited as saying. “It is possible and even maybe likely that we will have to discuss removing restriction,” he said, cautioning against bigger steps. “If you would suddenly accelerate the rate cuts while domestic inflation is still above 2.5%, I’m not sure we would give a ... (full story)