Analyst: The situation will become clear by September, giving the European Central Bank confidence to cut interest rates.

The July 18th data from Golden Data, Bahrain’s forex market analyst Kyle Chapman, said that the European Central Bank’s decision to pause interest rate cuts itself is not surprising, as the market has almost fully priced it in. Data during the two meetings does not support further interest rate cuts at the current stage, and the new momentum in service industry inflation is a good reason to be cautious. This statement represents a dramatic shift from the heavy signals sent out before June, with the central theme now being non-commitment. By September, the situation will become clear, and a series of new forecasts will give policymakers enough confidence in the outlook to cut interest rates once again.