(Bloomberg) -- European Central Bank Governing Council member Gabriel Makhlouf said officials shouldn’t hurry in loosening monetary policy.
“It is important to assess conditions carefully and pace yourself,” the Irish central-bank chief said Friday in a speech. “And with the finish line in sight, we don’t need to rush to it. In my view, a prudent and cautious approach remains the right one.”
Commenting on inflation, he said increases in the services gauge of around 3% would be more consistent with the goal of 2% for the headline reading. Services prices rose 3.9% from a year ago in October.
ECB policymakers are preparing for their final rate meeting of the year next month, with a quarter-point cut seen by investors as the most likely outcome. Talk of a bigger move has subsided after better-than-expected economic data for the third quarter, though risks to growth remain — not least from US trade tariffs should Donald Trump follow through on campaign vows when he takes over again as president.
“I expect a fragmenting global economy undergoing significant transitions — in demography, in technology, in climate — to mean that volatility and uncertainty will reflect a new normal, posing challenges to all economic policymakers,” Makhlouf said.
©2024 Bloomberg L.P.