According to Commerzbank, the European Central Bank (ECB) will cut its key interest rate in July

The second largest German bank adjusted its estimate, which initially expected such a move in the final quarter of this year. According to today’s statement, the bank responds to Tuesday’s statements of ECB chief Mario Draghi. Draghi said at the ECB’s annual conference in Sintra, Portugal, that the central bank is ready to ease monetary policy if inflation fails to accelerate.

Last December, the central bank terminated its bond purchase program, pumping newly printed money into the economy. However, it continues to support euro area economic growth and inflation with record low interest rates.

The ECB’s key interest rate is now at zero, with a deposit rate of minus 0.4 percent. This means that commercial banks have to pay to deposit their money with the ECB.

Analysts approached by Bloomberg are also expecting interest rates to fall below zero. Financial markets estimate that the ECB will cut interest rates by 0.1 percentage point by December. The next meeting of the ECB’s Monetary Committee will take place on 25 July.