ECB's Rehn Says It 'Makes Sense to Continue Rate Cuts'

The transcript discusses the Eurozone's economic outlook, highlighting both positive and negative aspects. Inflation is moving in the right direction, with disinflation on track and employment remaining robust. However, the growth outlook is subdued, prompting rate cuts. The discussion covers the impact of these cuts on market expectations and the potential for future reductions. The concept of a neutral interest rate is also explored, emphasizing its importance in monetary policy analysis.

What does the speaker suggest about the timeline for leaving the restrictive territory?

What is the significance of the term 'neutral' in the context of monetary policy?