The Zhitong Finance App learned that ECB Vice President Luis de Guindos (Luis de Guindos) said that cutting interest rates by 25 basis points next month seems reasonable under the current circumstances. He stressed that with regard to the June meeting decision, the ECB will maintain a high degree of transparency and adopt a prudent attitude to support this decision to cut interest rates.

Degindos pointed out that there is considerable uncertainty in the current economic environment, so no final decision has been made on the total number and specific extent of interest rate cuts. He stressed that the ECB will pay close attention to the further development of economic data and adjust policies accordingly.

When asked about the possibility of raising interest rates, Degindos made it clear that the interest rate hike is not the ECB's basic expectation at present. He explained that the trend of inflation will be a key factor in determining future monetary policy. The ECB expects that, although inflation may fluctuate in the short term, the inflation rate will gradually move closer to the ECB's definition of price stability — that is, the 2% target — by 2025.

However, Degindos also warned that there are some potential risk factors, including wage growth, changes in productivity, and falling unit labor costs and profit margins, all of which may have an impact on inflation.

In addition to this, geopolitical risks and uncertainties, such as the Russian-Ukrainian conflict, tension in the Middle East, and possible turmoil in Southeast Asia, are all factors that the ECB must consider when formulating monetary policy.

Degindos finally emphasized that the ECB will maintain a high degree of flexibility and caution with regard to interest rate adjustments; nothing is predetermined.

According to information, Eurozone policymakers generally believe that the interest rate cut in June will be the first step in a series of measures to cut interest rates. Among them, ECB Executive Director Martins Hazax pointed out that June may be the best time to start reducing borrowing costs. But at the same time, he stressed that any further interest rate cut decisions should be made based on the latest data.

Bank of Slovenia Governor Bostjan Vasle (Bostjan Vasle) also said that starting to cut interest rates in June may be the right time and is open to subsequent actions, and Bank of France Governor Villeroy also said that the ECB is likely to start cutting interest rates at the June policy meeting.

It is worth mentioning that ECB President Lagarde also recently stated that with rapid inflation growth now basically under control, interest rate cuts next month are a probable event.

In an interview, Lagarde stressed: “If the data received strengthens our confidence in achieving the 2% inflation target in the medium term, then it is very likely that interest rates will be cut on June 6.” She further stated, “I am very confident that we have kept inflation under control. Our predictions for next year will be very, very close, even if we don't meet our goals.”

Lagarde's remarks reflect the ECB's positive assessment of the current state of the economy, and she is optimistic about controlling the inflation rate. She believes that despite the uncertainty, the inflation rate in the Eurozone has slowed drastically and is expected to reach the ECB's 2% target in the second half of next year.

Similarly, Lagarde cautioned that management committee members will not commit to a specific interest rate path, but will rely on economic data to make collective decisions. “We have to rely on data,” she emphasized. This is a collective decision made by all members of the Management Committee, and it is difficult to define or predict the path after the first interest rate cut.”

Lagarde also warned of uncertainty, but she was more cautious: “Even the first interest rate in June does not mean that interest rates will be cut further at subsequent meetings.” Her goal was to reduce inflation to 2% and said, “The job is done. That's what I wanted to do.”

Overall, ECB policymakers generally agree that the interest rate cut in June will be an appropriate measure to deal with the current economic environment and leave room for possible future policy adjustments.