European Central Bank (ECB) Governing Council member Olli Rehn said on Wednesday the ECB could continue cutting interest rates if confidence in the slowing inflation trend strengthens in the near future. He noted that inflation in the Eurozone continues to slow down but acknowledged that the path to the ECB's 2% target remains bumpy.
In addition, Rehn said that recent market turmoil is an overreaction to uncertainty and thin liquidity and not a reaction to fundamental economic issues.