European Central Bank (ECB) policy maker Yannis Stournaras has said he supports two more ECB interest rate cuts this year. He also added that he predicts further easing of monetary policy next year.
"If the interest rate is reduced by 0.5% by the end of the year, it will reach 3%, but remains in a highly restrictive territory," he added.
The ECB doesn't have a neutral rate estimate, which neither restrains or stimulates the economy, but staff published a paper this year showing a real rate of around zero - or about 2% in nominal terms - when adjusted for inflation.
Meanwhile, Francois Villeroy de Galhau, ECB policymaker and Bank of France Governor, noted that the Central Bank is likely to cut interest rates again at its October meeting due to weak economic growth.
According to economists' forecasts, eurozone GDP will grow 0.2% this quarter, matching Q2's rate, and average 0.7% growth this year, before expanding by 1.2% in 2025 and 1.4% in 2026.