European Central Bank (ECB) Governing Council member Pierre Wunsch said on Monday that, in his opinion, it is premature to discuss the December policy decision, as several crucial events and data releases are to come in the coming weeks, including inflation readings, the ECB staff's updated economic projections and the U.S. presidential election.
The official also noted that he continues to see a soft landing as the most likely outcome, so there is no urgency in further accelerating the easing of monetary policy.
Wunsch also said that a temporary, small undershoot of the ECB's inflation target due to energy price swings is acceptable. "Being a bit below 2% is not a big event if the medium term continues to point to 2%," he said.