European Central Bank officials hint that interest rate cuts are nearing an end, raising concerns over upward inflation risks

ChainCatcher news, according to Jinshi reports, ECB Executive Board member Schnabel hinted that rate setters may have nearly completed the interest rate cuts in the eurozone.

He warned that as interest rates decline significantly, inflation risks are increasingly tilted to the upside. There is a general belief that, given signs of weak economic growth, the ECB Governing Council will cut rates again when it meets in early March. However, the hawkish Schnabel stated that the ECB should now begin discussing "whether to pause or stop" the rate cuts. This statement highlights the growing tension within the ECB regarding the economic outlook and marks the strongest indication so far that some of the 26 members of the ECB Governing Council believe they may soon need to slow down the pace of rate cuts or even stop them altogether.