ECB Advocates Gradual Rate Cuts Amid Economic Uncertainty

Chief Economist Philip Lane emphasizes a cautious approach, with the next potential cut likely in December.

Philip Lane, ECB Chief Economist, highlighted the importance of a gradual approach to lowering interest rates, contingent on incoming economic data.
Lane indicated that the ECB should keep its options open regarding the speed of rate adjustments, depending on economic conditions.
Governing Council member Peter Kazimir supported waiting until December for the next rate cut to avoid premature easing.
Kazimir stressed that significant new economic data would be required to consider an October rate cut.
ECB officials, including President Christine Lagarde and Vice President Luis de Guindos, echoed the need for flexibility and caution in setting future monetary policies.