The European Central Bank could continue to reduce interest rates as eurozone inflation approaches its target, Bundesbank President Joachim Nagel said.

The European Central Bank could cut interest rates three more times this year even if its U.S. counterpart moves more slowly but policy easing is predicated on a rapid fall in underlying inflation, Croatian policymaker Boris Vujcic said.

Nobody knows where the neutral rate is. But I guess the most important message is that we see in the Governing Council that inflation will come back to our target maybe by midst of this year. And this is good news.