ECB debates cutting interest rates due to concerns of inflation undershooting

From Investing.com: 2025-07-03 08:29:00

The European Central Bank’s June meeting minutes revealed concerns about inflation undershooting, leading to a decision to cut interest rates. Some members debated whether monetary policy was still neutral or already accommodative. While most supported the rate cut, some argued for keeping rates unchanged due to temporary factors affecting inflation. With the euro strengthening, the ECB may need to cut rates further to combat potential inflation undershooting. The ECB is expected to cut rates again in September, depending on trade tensions and economic outlook. Overall, the minutes suggest a heated discussion within the ECB on future policy decisions.



Read more at Investing.com: ECB Faces Growing Divide as Inflation Undershoot Becomes Harder to Ignore