FRANKFURT (Reuters) – The European Central Bank should almost certainly wait until December before cutting interest rates again to ensure it does not make a mistake by easing too quickly, ECB Governing Council member Peter Kazimir said on Monday.
“We will almost certainly have to wait until December to have a clearer view before making our next decision,” he said in a blog post.
“It would take a significant change, a strong signal, in the outlook to consider supporting a further reduction in October,” he added, while noting that “very little new information is being developed.”
For Peter Kazimir, head of Slovakia’s central bank and a proponent of monetary orthodoxy, the ECB must ensure that incoming data confirms its economic projections, otherwise monetary policymakers may regret rushing to cut borrowing costs before inflation had been permanently defeated.
The ECB cut rates for the second time this year on Thursday and said it expected inflation to return sustainably to its 2% target by the end of 2025.
(Written by Balazs Koranyi, Diana Mandiá, edited by Blandine Hénault)
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