ECB Cipollone sees deterioration of EU PMI, slower growth, along with faster disinflation

ICYMI, the European Central Bank provided a transcript of remarks from Executive Board member Piero Cipollone made in an interview with Austrian public broadcaster ORF conducted back on September 27.

Sheesh, took ’em a while!

In summary, Cipollone’s comments point to a rate cut at the Bank’s October 17 meeting, a result widely expected in markets:

  • “We could get a growth that is a little bit slower than what we were thinking,”
  • “And also numbers we are seeing, the first numbers from inflation seem to be pointing to the fact that inflation is decelerating faster, faster than we expected.”
  • “We have seen a deterioration of the PMI, so the signals coming from the real side of the economy are a little bit weak,”

He said the policy setting board is data-dependent. Draw your own conclusions but I think a rate cut ios a no brainer given his comments on the state of the economy.

This article was written by Eamonn Sheridan at www.forexlive.com. Source