MNI BRIEF: Risk ECB Could Become Too Restrictive - Cipollone

MNI (LONDON) - The latest data confirm the European Central Bank's "direction of travel" on interest rates and although not pre-commited on any rate path, policymakers would hope to be able to remove some restriction before becoming too restrictive, Executive Board member Piero Cipollone told Le Monde in an interview published Wednesday.

Although upbeat that inflation will be at target sustainably by H2 2025, Cipollone was more concerned about the growth outlook.

"The most recent data -- such as consumer confidence and activity indicators (Purchasing Managers’ Index), particularly for the manufacturing sector -- have not been so encouraging. This poses a risk to the euro area growth outlook," he said. (see MNI SOURCES: Growth Rises Up List Of ECB's Concerns)

Cipollone did not pre-commit to any future rate path, suggesting the Governing Council "will take our decisions on a meeting-by-meeting basis," although he warned there is a "real risk that our stance could become too restrictive ... every delay in this area puts us at a serious disadvantage."