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ECB Governing Council member Olli Rehn suggested today that slowing inflation and weaker growth prospects in Eurozone has provided “more grounds” for another rate cut at the October meeting.
Additionally, Rehn pointed to the “prevailing headwinds” facing economic growth in the Eurozone, noting that these challenges “tilt the scales” toward a more accommodative policy stance.
He also cautioned that it is too early to declare a “soft landing” for the economy, as risks to growth remain prominent.
Rehn repeated ECB’s data-driven approach, adding, “let’s follow the figures closely and make a comprehensive analysis before making decisions, as always.”
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