according to sources, policymakers at the European Central Bank are confident that they do not need to further lower interest rates to achieve a 2% inflation rate, despite new economic forecasts showing that inflation will be below 2% in the next two years. The sources said that unless the euro area faces another major shock, borrowing costs will remain at their current levels for a period of time. The sources also indicated that while the possibility of a rate cut at the October meeting is almost ruled out, December will be an opportunity for reassessment as the new quarterly forecasts will include 2028. A European Central Bank spokesperson declined to comment.