European Central Bank's Governing Council Member and Governor of Slovenia's Central Bank Bostjan Vasle underscored on Friday that the decision to raise interest rates by 25 basis points was influenced by the latest economic trends in the region, stressing that policymakers will ensure that the interest rates are "sufficiently restrictive" for "as long as it takes" until the inflation rate reaches the 2% objective.
"The latest data indicate signs of a cooling of economic activity in the euro area, with both manufacturing and services sector registering a slowdown in the activity's growth, Vasle said in the statement, pointing out that the resilience of the labor market represents "the central risk that core inflation will persist at higher levels" for longer than anticipated.
The day before, ECB President Christine Lagarde emphasized that the central bank will not be considering rate cuts at its September meeting.
