The chief economist of the European Central Bank, Philip Lane, spoke in an interview with a Spanish newspaper hinting at the possibility of an interest rate cut next June, where he said:
What we said last April is that if our level of confidence in the return of inflation to our target improves, it would be appropriate to reduce the current level of interest rates.
There are still several weeks until the June meeting, but the April data is important, as the preliminary estimate of inflation in the eurozone in April and the published GDP data for the first quarter of the year improve my confidence that inflation will soon return to the target.
So my confidence level has improved today compared to our April meeting, but of course we are waiting for more data between now and the next June meeting.
