Eurozone Inflation on a Stabilizing Path

Olli Rehn, a member of the European Central Bank (ECB) Governing Council and Governor of the Bank of Finland, expressed confidence on Friday that inflation in the Eurozone is on a stabilizing path towards its 2% target. This optimistic outlook is expected to materialize by the spring and summer of 2025, prompting the ECB to implement a new cut in its three key interest rates.

Economic Growth Despite Challenges

Speaking at a stakeholder event in Helsinki, Rehn highlighted the Eurozone's resilience in avoiding a recession and fostering economic growth, even in the face of higher interest rates. He also pointed to "further signs of a slowdown in wage inflation," indicating a positive shift towards economic stability.

Future Monetary Policy Adjustments

Rehn mentioned that the upcoming ECB meeting will provide an updated forecast, offering a clearer picture of inflation stabilization and the pace of economic recovery. This will enable the ECB to reassess its monetary policy stance, ensuring it remains aligned with the evolving economic landscape.