European Central Bank interest rates will keep falling as policymakers are confident that inflation will stabilise at the bank's 2% target, Finnish central bank chief Olli Rehn said on Wednesday. "We are now confident that inflation will stabilise at the target as predicted and monetary policy will stop being restrictive in the near future,

Eurozone inflation fell to 2.4% in December 2024, but ECB chief economist Philip Lane cautions that services inflation and uneven growth persist. A "middle path" on interest rates and structural reforms is crucial for stability.

The European Central Bank (ECB) is sticking to its guns on reducing inflation to 2% this year, even as Donald Trump’s return to the White House raises new uncertainty over global trade and economic stability.

The European Central Bank needed to cut interest rates cautiously and gradually but further policy easing was likely coming given weakening price pressures, policymakers concluded last month, according to the accounts of their Dec 11-12 meeting.