The head of the central bank of Finland and a member of the ECB governing Council, Olli Rehn, said that he believes investors' expectations about two rate cuts by the end of the year are justified, which will reduce the cost of borrowing to 2.25% by 2025. In his interview, Ren also noted that officials should return inflation to 2%, without curbing excessive economic activity. «Market data points to two upcoming rate cuts, which will lead to a level of 3.25% by the end of this year and about 2.25-2.50% in the long term. I think these are reasonable expectations,» Ren said. The ECB cut the rate in June after a historic series of increases aimed at combating high inflation in the eurozone. Most officials have since avoided accurate forecasts, given the recent surge in consumer prices, high wage growth and geopolitical tensions.
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