European Central Bank Governing Council Member: Economic Downturn Must Be Key Factor for Interest Rate Cut
Publication Time:2024-09-13 18:31:08
European Central Bank Governing Council member Kazaks pointed out that for the European Central Bank to decide on an interest rate cut at next month's meeting, the eurozone economy must show signs of decline. Although according to financial market observations, the possibility of a rate cut in October seems unlikely, if the economy faces unexpected shocks or experiences a weaker state than currently anticipated, and inflation levels drop significantly, then considering a rate cut would be reasonable. Kazaks further explained that although service prices remain high, leading to inflation not disappearing completely, the growth rate of the economy is lower than expected, which may be due to tight monetary policy. Therefore, it is reasonable to gradually begin adjusting interest rates. It should be noted that the European Central Bank has already taken two actions this year to address economic conditions, even though the fiscal year has not yet ended.
European Central Bank
Financial Markets
Interest Rate Cut
economic downturn
Council Member Kazaks