The euro area inflation rate will stabilise at the European Central Bank's 2% target during the course of 2025, Finnish ECB policymaker Olli Rehn said in a speech on Tuesday. "The direction of monetary policy is clear: interest rate cuts have begun and our monetary policy stance is becoming less restrictive,

Euro-area inflation slowed below the European Central Bank’s 2% target for the first time since 2021 — backing investor bets that interest rates may be lowered more quickly than previously anticipated.

The euro zone's annual inflation rate fell to its lowest level in three and a half years in September, dropping below the European Central Bank's 2% target and fuelling expectations of a rate cut.