ECB Governing Council member Bostjan Vasle has hinted at the possibility of further rate cuts this year, provided the baseline scenario holds and economic data supports such a move.
Speaking to Finance newspaper, Vasle said, “If the baseline scenario is realized and the data are favorable, then we can probably expect further rate cuts already this year, and then also next year.”
However, he cautioned that if the economic conditions are not as supportive, it would be prudent to “wait some more time with further steps.”
Vasle also highlighted several risks that could slow down the disinflation process, pointing to “relatively strong” momentum in wages, ongoing economic growth, and geopolitical uncertainties. These factors could impact the ECB’s decision-making process regarding future rate cuts.
