Online reports that Alfred Kammer, head of the IMF's Europe department, said the ECB should keep deposit rates at the current level of 2%, unless new shocks materially change the inflation outlook. The European Central Bank has cut interest rates by two percentage points since June 2024 and signaled this month that it would suspend interest rates, although financial investors still believe the bank will cut interest rates again to 1.75% later this year. "The inflation risks in the eurozone are two-sided," Kamer said. "That's why we believe the ECB should stick with it and not deviate from the 2 percent deposit rate unless there is a shock that materially changes the inflation outlook." "We haven't seen such a big change yet." Part of the reason for the IMF's divergence from markets is that it expects inflation next year to be higher than the ECB's expectations.