Additional gradual price cuts shall be acceptable if baseline projections maintain – ECB accounts

• Members had been more and more assured that inflation would return to focus on in 1H 2025
• A gradual dialing again of coverage restrictiveness could be acceptable if baseline projection for inflation is confirmed over the following few months and quarters
• There are nonetheless many upside and draw back dangers to inflation outlook, so mustn’t let its guard down within the ultimate stretch of the disinflation course of
• A cautious method continues to be warranted amid prevailing uncertainties and the existence of quite a lot of components that might hamper progress on inflation developments
• Some members famous a case may very well be made for a 50 bps price reduce (for December) and would have favoured extra consideration on such a risk
• Full accounts

This text was written by Justin Low at www.ubaidahsan.com.



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