If our projections that inflation will converge towards 2% target in the second half of 2025 continue to be confirmed, we will continue to gradually ease our restrictive stance.The ECB will have an open mind in the October meeting even as downside risks to growth might already be materialising.Many recent data suggested that downside risks to growth were already being materialised, so the ECB has to evaluate whether this would have an impact on the inflation forecast.The pace with which the ECB will deliver the easing will remain flexible and dependent on data on economic growth and inflation. The latest data were not in line with the ECB’s forecast.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
