ECB member Gediminas Shimkus said: it is possible that there will be more than one interest rate cut this year.
- The data very clearly show the decline in inflation.
- But the road ahead is bumpy.
- If the trend matches the expectations of the ECB, there will be further cuts in interest rates.
ECB member Joachim Nagel and president of the German central bank also said: the decision to cut interest rates was not premature.
- The decision to reduce interest rates was logical.
- There is a tendency to low inflation.
- We are not in Autopilot mode, we will look at the data and decide anew at each meeting.
As de Guindos, vice-president of the European Central Bank, said: inflation is expected to reach about 2% next year, and he also sees great uncertainty in the economy.
ECB member Olli Rehn also said that inflation will continue to decline.
- That interest rate cuts will support the economic recovery.
As ECB member Isabelle Schnabel said: monetary policy has not been dominated by fiscal policy in recent years.
As ECB member Robert Holzman said: I was the only one who opposed cutting interest rates.
- Seeing it as a hard reduction indicates that we will act more cautiously in the future.
- There is little risk of a second wave of inflation.
- But inflation is stronger than expected.
- We hope that the future will be data-driven.
Holzman does not believe that this move is based on data, despite all the justifications given by his peers.
The general narrative of the rest of the members and what the ECB is trying to promote now is that we were right to cut interest rates in June and we are also right to wait and keep the door open to see what to do next, but one thing is for sure that there will be no further rate cut in July at least, and another rate cut in September is still possible at this stage.
