European Central Bank Governing Council Member Wunsch: If inflation slows down beyond expectations, interest rates will be gradually lowered, and the terminal rate may approach 2%

European Central Bank Governing Council member Pierre Wunsch stated that if inflation slows more than expected, the central bank may gradually cut interest rates, with the terminal rate approaching 2%. He warned that if there is a sudden acceleration in rate cuts while domestic inflation remains above 2.5%, it could send a negative signal. The market expects the fourth rate cut to occur on December 12, although some officials prefer a gradual approach. The Governor of the Bank of Greece hopes to lower rates to 2%, while Isabel Schnabel pointed out that borrowing costs could fall to neutral levels. Wunsch also mentioned that Trump's return to the White House could lead to a weaker euro