ECB needs clearer data before next rate cut – Kazimir

The European Central Bank (ECB) will likely wait until December before considering another interest rate cut, ECB’s Governing Council member Peter Kazimir indicated on Monday.

Kazimir emphasised the need for more data to ensure that a premature rate cut does not lead to policy errors.

In a blog post, Kazimir stated, “We will almost surely need to wait until December for a clearer picture before making our next move.” He added that unless there is a significant shift in economic outlook, another cut in October is unlikely.

Kazimir, who is known for his cautious stance on monetary policy, stressed that the ECB must confirm its projections with solid data to avoid regretting an early rate cut.

The ECB recently reduced rates for the second time this year and expects inflation to return to its 2 per cent target by the end of 2025.