The ECB should wait until December with its next rate cut, says Reuters’ Kazimir

FRANKFURT (Reuters) – The European Central Bank should almost certainly wait until December before cutting interest rates again to make sure it doesn’t make the mistake of easing too quickly, Governing Council member Peter Kazimir said on Monday ECB governors.

“We will almost certainly have to wait until December for a clearer picture before making our next move,” Kazimir said in a blog post.

“I would need a significant change, a strong signal, in terms of the outlook to consider another rate cut in October,” said Kazimir, head of Slovakia’s central bank. “But the fact is that very little new information is in the pipeline.”

Kazimir, an outspoken hawk, argued that the ECB needed to ensure incoming data confirmed its forecasts, otherwise policymakers could regret rushing to cut borrowing costs before inflation was durably subdued.

The ECB cut interest rates for the second time this year last Thursday and said it expected inflation to return to its 2% target on a sustainable basis by the end of 2025.