ECB Governing Council member Peter Kazimir struck a cautious tone today, signaling that while a rate cut next week is possible, he remains “not completely convinced” that ECB should move based on just one positive inflation reading.
Speaking to reporters, Kazimir acknowledged that September’s CPI dip below 2% for the first time since 2021 has fueled expectations of a rate cut, but he emphasized the need for a more comprehensive view of the economic data. “And we’ll have that key information in December,” he added
He also downplayed concerns about the risk of inflation undershooting the 2% target, stating, “I definitely don’t wake up in a sweat thinking that the inflation rate should be well below 2%.”
“On the contrary, we still lack sufficient confidence that we’re out of the woods and that the goal of sustainably being at 2% is entirely realistic,” he warned.
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