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Introduction

The European Central Bank (ECB) is approaching the conclusion of its interest rate cuts as inflation is anticipated to stabilize at 2%.

Context

ECB policymaker Boris Vujcic made this statement on Saturday, emphasizing the ECB's latest actions. This follows the recent cut in interest rates, marking the eighth reduction over the past year.

Developments

On Thursday, the ECB announced this latest interest rate reduction and suggested a possible pause in policy adjustments next month. Vujcic highlighted that inflation has now returned to the desired 2% target after a prolonged period of exceeding that level.

Conclusion

If inflation remains steady at the expected level, the ECB is effectively nearing the end of its rate-cutting cycle, indicating a shift in its monetary policy strategy.