ECB’s de Cos: Should Cut Rates in June if Inflation Outlook Confirmed

7 May 2024

By Aurėja Bobelytė – VILNIUS (Econostream) – European Central Bank Governing Council member Pablo Hernández de Cos on Tuesday said that if the inflation trend continued to point downwards, then the ECB would cut interest rates in June.

In presenting the annual report of the Banco de España, which he heads, de Cos said, ‘If these inflation prospects are maintained, from my point of view it would be advisable to begin reducing the current level of monetary restriction in June.’

Given the high level of uncertainty, decisions would be made by a data-dependent approach and meeting-by-meeting, ‘without committing to a specific path for rates’, he said.