The European Central Bank should adjust monetary policy to a level that neither stimulates nor constricts the economy, according to Governing Council member Jose Luis Escriva.

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,

The European Central Bank is on track to lower inflation and cut interest rates but needs to have a deep think about how much further and how quickly policy should be eased, ECB board member Isabel Schnabel said over the weekend.

European Central Bank Governing Council member Jose Luis Escriva said another reduction in borrowing costs at next week’s meeting is very probable as recent data confirm the outlook for inflation.

European Central Bank policymakers lined up behind further interest rate cuts on Wednesday, indicating that next week's reduction is all but a done deal and further moves will also come. Having cut rates four times already in response to weak growth and falling inflation,

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.