MNI BRIEF: "Door Wide Open" for October ECB Rate Cut - Guindos
MNI (ROME) - The European Central Bank has left "the door totally open" for a potential interest rate cut at its October meeting, ECB Vice President Luis de Guindos said in an interview with Expresso on Friday.
However, he noted that while the ECB remains flexible, it will have more data and fresh projections by the time of the December meeting, but any decision will depend on how the economic data evolves.
De Guindos attributed the Eurozone's sluggish growth to factors beyond monetary tightening, identifying consumption as the key factor in the region’s economic trajectory. He emphasized that positive real incomes and consumer confidence will be crucial drivers. He also flagged services as the main inflation risk, but expressed optimism for improvement, citing wage moderation as a contributing factor.