European Central Bank Governing Council member Madis Muller stated on Tuesday that an October interest-rate cut isn't totally excluded, noting that, in his opinion, it’s early to express a clear view on next month's meeting. The official added that it would be easier to decide on a rate cut in December, as the policymakers would have an updated outlook then.
Muller also admitted that this week’s data indicated that risks in the eurozone are clearly to the downside, and warned that economic growth will be lower than the predicted number, outlined in the ECB's recently presented base-case scenario.
In addition, the policymaker expressed caution over services inflation, which was very fast, according to the latest data. Muller stressed he would like to see that slow down further.