European Central Bank decision-makers have not ruled out the possibility of cutting interest rates.

European Central Bank policymakers warned on Friday that there are significant risks in their latest economic forecasts, so caution should be maintained in policy making, and the possibility of further interest rate cuts has not been ruled out. The ECB kept interest rates unchanged on Thursday and raised some growth and inflation expectations. Investors believe this move indicates that borrowing costs will not be lowered further. Although the market has already priced in expectations for rate cuts and is currently expecting rate hikes in 2027, several policymakers including Franois Villeroy de Galhau from the Bank of France, Klaas Knot from the Dutch Central Bank, Robert Holzmann from the Austrian Central Bank, Pablo Hernndez de Cos from the Bank of Spain, and Olli Rehn from the Bank of Finland warned against drawing premature conclusions. Holzmann pointed out: "In terms of the overall economic situation, we are currently not optimistic, as uncertainty remains high," "This means that if necessary, we could either further lower interest rates or raise them."