No rush for rate cuts – ECB’s Makhlouf

Rapid interest-rate action is not necessary at this time, Gabriel Makhlouf, a member of the European Central Bank’s (ECB) Governing Council, stated.

In an interview with the Irish Examiner on Sunday, Makhlouf emphasised that there is no immediate rush to make decisions on interest rates.

He noted that while the process of bringing inflation back to the ECB’s 2 per cent target has been challenging, it is progressing.

The ECB recently decided to maintain current borrowing costs, with President Christine Lagarde indicating that the next policy meeting on September 11–12 remains “wide open.”

Makhlouf supported this approach, highlighting that the ECB has no predetermined rate path and will adopt a meeting-by-meeting strategy.

With ongoing inflation pressures, especially in the services sector, ECB officials are wary of assuming that rate cuts are imminent. He stressed the need to closely monitor inflation, particularly in services, which continues to show strong growth.

Attribution: Bloomberg.