European Central Bank Interest Rates

FRANKFURT (Reuters) – European Central Bank interest rates are expected to continue declining as policymakers are confident that inflation will stabilize at the bank’s 2% target, stated Finnish central bank chief Olli Rehn on Wednesday.

“We are now confident that inflation will stabilize at the target as predicted and monetary policy will stop being restrictive in the near future,” Rehn said during a speech in Oulu, Finland.

Rehn mentioned that markets anticipate the ECB’s deposit rate to decrease from 3% to 2% by the end of the year. However, he refrained from endorsing these expectations, suggesting that rates will decline, and the pace will be determined on a meeting-by-meeting basis.