ECB’s Cipollone sees slower growth and faster inflation deceleration

ECB Executive Board member Piero Cipollone suggested in an interview that growth may come in “a little bit slower” than previously expected. Weak PMI data is also raising concern. The “signals coming from the real side of the economy are a little bit weak”, he added.

Cipollone also noted that inflation is “decelerating faster” than anticipated. “So we will get all this information and reassess the situation on the next monetary policy meeting,” he said.

Separately, Governing Council member Robert Holzmann emphasized that, while inflation is “on the right track,” core inflation remains problematic. He attributed much of the recent inflation drop to lower energy costs but warned that the underlying inflation picture still “doesn’t look so good.” Holzmann, who backed the September rate cut, cautioned against assuming that further rate cuts are imminent.