In a recent statement, Robert Holzmann, a key figure in ECB policymaking, emphasized the discernible effects of monetary policy normalization in curbing inflationary pressures. He cautioned against premature considerations of rate reductions at this juncture, despite the ongoing unprecedented sequence of rate hikes. Holzmann underscored the absence of a definitive assurance for potential rate cuts in 2024. This stance reflects the ECB’s reluctance to pivot its policy direction for now. However, there’s a growing consensus that if current trends persist in the forthcoming months, rate cuts might become an inevitable course of action sooner rather than later.