ICYMI – ECB Council Member Urges Prudent Monetary Policy Approach

Ireland’s central bank governor and hence European Central Bank (ECB) Governing Council member Gabriel Makhlouf spoke on Friday, ICYMI.

He emphasized the importance of a careful assessment and maintaining a measured pace of monetary policy easing, suggesting that with the end goal in sight, there’s no need to rush.

• “It is important to assess conditions carefully and pace yourself.”
• “And with the finish line in sight, we don’t need to rush to it. In my view, a prudent and cautious approach remains the right one.”

On inflation:

• mentioned that a 3% increase in service prices aligns more closely with the ECB’s 2% target for overall inflation (in October, service prices rose by 3.9% y/y)

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The background to his remarks are that the European Central Bank has its final 2024 meeting on December 12:

• markets anticipating a quarter-point rate cut
• likelihood of a larger cut has decreased following unexpectedly strong economic data for Q3
• however, growth risks persist, including potential Trump trade tariffs

This article was written by Eamonn Sheridan at www.forexlive.com.