Central Bank governor said he is “pleased” with latest data showing inflation in the 20 Eurozone countries slow to 2.5% in June
Two rate cuts at the beginning of July is"probably going a little bit too far", Central Bank governor Gabriel Makhlouf said at ECB event. Photograph: Nick BradshawCentral Bank governor Gabriel Makhlouf has said he is comfortable with just one more ECB interest-rate reduction this year as he needs more time to gain confidence inflation is headed to the 2 per cent target.
“I think two cuts today, at the beginning of July, is probably going a little bit too far. I’m not saying I’d rule it out.” The ECB began undoing its steepest ever streak of interest rate hikes last month but president Christine Lagarde said the central bank for the euro zone Data on Tuesday showed inflation in the 20 countries that share the euro slow to 2.5 per cent in June from 2.6 per cent a month earlier.
The ECB has singled out wages, which are finally catching up with inflation after falling behind them in 2021-22, as the key driver of prices in the services sector and Mr Makhlouf said he and colleagues should “allow time” to see more data.
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