European Central Bank (ECB) policymaker Olli Rehn said on Wednesday, the market expectations that the ECB will reduce interest rates twice more this year to as low as 2.25% in 2025 are ‘reasonable’, per Bloomberg.

The Finnish central bank chief also said that “while officials must ensure inflation returns to 2%, they shouldn’t overly dampen economic activity.”

Market reaction

The above comments maintained the bearish pressure on the EUR/USD pair, as it flirts with intraday lows near 1.0710, at the time of writing.