The pace and extent of rate cuts will be decided on a meeting-by-meeting basis

European Central Bank (ECB) policymaker Oli Rehn said in a speech on Tuesday that “the pace and extent of interest rate cuts will be decided on a meeting-by-meeting basis.”

Additional comments

The inflation rate in the euro area is set at the ECB’s target of 2% in 2025.

The direction of monetary policy is clear, rate cuts have begun.

Our monetary policy stance is becoming less restrictive.

The Draghi report is a necessary wake-up call to all Europeans about Europe’s low growth.

The Draghi report will provide a good basis for the commission’s next work programme.

Market reaction

EUR/USD is defending 1.1100 following these comments, down 0.23% on the day at press time.