"Inflation is returning to target faster than expected" and the slowdown in prices "has fueled expectations of interest rate cuts by the major central banks".
This was stated by the International Monetary Fund in the document prepared for the G20 of economy ministers and central bank governors on 28 and 29 February in Sao Paulo.
The Fund calls on central banks to move cautiously, to monitor inflation developments and "avoid easing too early or too quickly".
The ECB is expected to start cutting interest rates in June, but not later.
This was stated by the member of the ECB's governing council Yannis Stournaras speaking in Liverpool.
"Realism and gradualness must guide our actions" he explained, according to Bloomberg, underlining that he is in favor of small steps of 25 basis points.
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