ECB’s Rehn: Inflation Data Back Case to Cut Rates in October

1 October 2024

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Olli Rehn said on Tuesday that recent inflation data supported the case for an ECB rate cut in October.

During a press briefing at the Bank of Finland, which he heads, Rehn said that the ECB had ‘received further confirmation from recent statistical data that inflation is slowing down’.

This was yet more reason to lower rates at the Governing Council's October meeting, he said.

‘The recent weakening of the euro area’s growth prospects tilts the scales in the same direction’, he added.

The ECB should follow the figures closely and make a comprehensive analysis before making decisions, he said.

A soft landing cannot be yet declared, according to Rehn, due to prevailing headwinds for economic growth.

‘This should be taken into account in the future decision-making of monetary policy, without jeopardizing price stability’, he said.