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European Central Bank monetary policy

ECBs must be cautious about future moves to lower bank interest rates. Because if bank interest rates continue to be cut in the eurozone, inflation could start rising again for two reasons.

The first is to increase the borrowing rate of companies and individuals in society.

Second, because further cuts in bank interest rates will increase the likelihood of the euro falling against the US dollar and other currencies, causing imported goods to rise in price and inflation to return to the European economy.

Dr. Kamaran Qader Yaqub,
Financial Consultant at Investment Spot company. 

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