IMF: ECB should keep interest rates at 2% unless new shocks emerge

币界网报道:[IMF: Unless there is a new shock, the ECB should keep interest rates at 2%] According to the Coinnet report, Alfred Kammer, head of the IMF's European Department, said that the ECB should keep the deposit rate at its current level of 2% unless a new shock substantially changes the inflation outlook. Since June 2024, the ECB has cut interest rates by two percentage points and hinted this month that it would pause, although financial investors still believe that the bank will cut interest rates again to 1.75% later this year. "Eurozone inflation risks are two-sided," Kammer said. "That's why we think the ECB should stick with it and not deviate from the 2% deposit rate unless there is a shock that substantially changes the inflation outlook." "We haven't seen such a big change yet." Part of the reason why the IMF differs from the market's view is that the IMF expects inflation levels to be higher than the ECB's expectations next year.

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