ECB‘s Scicluna: June Rate Cut Probable as Inflation Approaches 2% Target

19 April 2024

By Aurėja Bobelytė – VILNIUS (Econostream) – European Central Bank Governing Council member Edward Scicluna said Friday that a June interest rate cut is likely, as inflation has been converging to the 2% target.

In an interview with CNBC, Scicluna, who heads the Central Bank of Malta, said, ‘If we are seeing that inflation is coming to our target of 2%, why continue holding the chokehold on the economy for no reason?’.

‘It’s more a question of whether you’re risk averse and scared because of risks that you wait to cut. One could have cut rates way back in March or even April’, he said.

Monetary policy should be eased to foster economic growth, Scicluna said.

‘[C]hoking the economy if there’s a need for that is fine. But in our case, it does a lot of damage. The economy wants to grow and we’re holding it’, he noted.