European Central Bank Governing Council member Gabriel Makhlouf stated in an interview with the Irish Independent on Saturday that he thinks that gradual change in policy stance is the best way of adjusting, as well as, best rather than a sudden decision.
The official, however, noted that the ECB policymakers now have greater confidence about inflation’s trend but not sufficiently to change the policy stance. He added that if the rate-setters are confident enough about meeting the 2% target, they will recalibrate the stance and reduce the rates.
Makhlouf also admitted that geopolitical risks shouldn’t be disregarded.