European Central Bank Governing Council member Peter Kazimir said on Monday that he believes the ECB policymakers will almost surely need to wait until December for the next rate move.
The official added that he would require a significant shift in the outlook to consider a cut in October. "But the fact is that very little new information is in the pipeline," he noted.
Kazimir also stressed that last week’s rate reduction by the ECB doesn’t mean its policymakers are on a path to lower rates every time they meet. He added that his colleagues stay open-minded but admitted that he sees that there is still more risk that inflation will be higher over the medium term than is currently projected. Kazimir noted that the ECB's inflation outlook relies on a significant slowdown next year, but this slowdown might not come.
The official also acknowledged that the euro area's economic recovery has been disappointingly weak and cautioned that the region's economy has deeper challenges.