ECB’s Scicluna: March could be it for rate cut

In an interview, ECB Governing Council member Edward Scicluna pointed to March economic projections as a crucial factor that could justify a shift in policy, opening the door for rate cuts. “March could be it,” he suggested, “We’ll see how many think that there’s no need to wait for June.”

Acknowledging the “bumpy” path toward achieving ECB’s disinflation objectives, Scicluna emphasized the clear trend of declining inflation. “You should see the writing on the wall and admit objectively that the trend is going down,” he stated.

Despite the possibility of justifying a hold on rate cuts due to various concerns, including geopolitical tensions, Scicluna argued for a more direct approach: “You have to make a judgment; you don’t find these excuses.”

“Let’s face reality — of course, risks are flying all around us,” he said. “But when you get a comprehensive look at things, prices are falling.”

“At a time when demand is falling, I believe you can let off the pedal a bit,” Scicluna said.