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.

The European Central Bank is right to be cautious in cutting interest rates considering heightened uncertainty and lingering inflation risks, Governing Council member Joachim Nagel told Platow Brief.

Despite the rise in inflation, markets continue to anticipate aggressive ECB rate cuts in 2025, with a 25-basis-point reduction expected this month.

The European Central Bank should continue to lower interest rates to about 2% as inflation in the euro zone was generally under control, ECB policymaker Mario Centeno said on Wednesday.

The European Central Bank should continue to cut interest rates to reach 2% by the summer as the battle against inflation is practically won, Governing Council member Francois Villeroy de Galhau said.