The European Central Bank (ECB) is highly likely to lower interest rates next week, according to News Clearly's macroeconomist Han de Jong. The ECB has nearly achieved its 2% inflation target, though De Jong warns it's too early to celebrate. 'I think the ECB assumes the job is done for now,' he said.
Next week's rate committee meeting is expected to result in the eighth consecutive rate cut. However, future actions remain uncertain due to the unpredictable economic policies of the United States. De Jong acknowledges the uncertainty caused by potential import tariffs, which could harm economic activity. 'If that's the case, it might justify further rate cuts,' he added.
De Jong predicts a decline in Dutch inflation in the coming months, possibly below 3% if rent reductions for social housing proceed.