European Central Bank (ECB) Executive Board member Piero Cipollone stated on Monday, while giving opening remarks at the European Parliamentary Week 2024 that, with "weak demand and inflation expectations anchored," there is "no need for monetary policy to generate further slack to keep inflation in check."
"We all know hikes aren't coming and this doesn't address when cuts will arrive," he said, while emphasizing the need to "remain data-driven" before making any rate cutting decisions.
Cipollone explained that the eurozone is facing "multiple challenges to its global competitiveness," pointing out exposure to "risks of global trade fragmentation." He noted that the "pandemic and the energy crisis have starkly highlighted the vulnerabilities of supply chain disruptions ... which led to cost spikes that directly affected the competitiveness of European firms."
