Lien: There is a risk that the Central Bank will cut interest rates too early or too late

Sina Financial News European Central Bank Chief Economist Lian En said that although the current inflation trend is very good, it will take more time to ensure that price growth returns to the 2% target. There is a risk that the Central Bank will cut interest rates too soon or too late. Lien said the exact timing of monetary policy easing depends on the data, and the downward path of deposit Intrerest rates will be determined by meeting after meeting. Central Bank policymakers are now considering whether to cut borrowing costs for the first time in April or June, with many hoping for a later cut to better gauge the rebound in eurozone wages after the inflation shock. While earlier moves will help boost the region’s sluggish economy, data from the UK and US highlight that global price pressures have not yet fully eased.