Eurozone inflation is expected to hold steady in August, according to a recent economists’ poll. The annual headline consumer price growth rate is forecasted to remain at 2.0%, matching the level seen in July and aligning with the European Central Bank’s (ECB) target of 2% over the medium term. Additionally, the less-volatile core rate is predicted to decrease marginally to 2.2% year-over-year.

This development comes as a relief to the ECB, which has likely ended its cycle of interest rate cuts. The central bank had lowered rates several times in recent years to stabilize the eurozone economy amidst a global pandemic and economic uncertainty. However, with inflation now on track to meet the ECB’s target, there may be less pressure to further reduce interest rates.

The poll of economists suggests that the Eurozone’s inflation rate has been steady in recent months, with little change expected in the near future. This is a positive sign for the eurozone economy, as it indicates that price growth is stabilizing and no longer falling short of the ECB’s target.

The ECB’s inflation target is set at 2% over the medium term, which means that inflation should be around this level over the long run. The central bank uses a variety of tools to manage inflation, including interest rates, monetary policy, and supervision of national banks. By keeping inflation within this target range, the ECB can help maintain price stability and support economic growth in the eurozone.

Eurozone inflation is on track to meet the ECB’s target, which is a positive development for the economy. With inflation stabilizing and interest rates no longer needing to be cut, the ECB may have reached the end of its cycle of monetary policy easing. This could pave the way for a more stable and growth-oriented economic environment in the eurozone.