Council member Olli Rehn said on Friday that last week the ECB Council began a discussion on when to cut interest rates.
- The discussion on reducing the restrictive dimension of monetary policy has begun.
- The conversation is about the right time to start lowering interest rates.
- If inflation continues to fall sustainably towards the target, then we can already approach the summer and slowly begin to loosen our feet from the monetary policy brake pedal.
The European Central Bank kept borrowing costs at a record high last week, but policymakers have signaled they are preparing for the first rate cut.
In any case, the markets are still ready to move in June and not earlier, and Rehn's comments do not change this narrative.
