ECB's Centeno: ECB may have to cut rates faster

Odaily News In an interview with Politico, Portugal's central bank governor and ECB board member Luis Centeno said the European Central Bank may have to speed up the pace of rate cuts as data released since last week's rate cut showed that economic growth and inflation may fall short of the ECB's new forecasts. "Given where we are at the moment, in the monetary policy cycle, we really have to minimize the risk of lower-than-expected rates because that is the main risk," Centeno said. Centeno's comments are the clearest sign yet that an October rate cut is still possible. The ECB is grappling with the question of how quickly it should ease policy as the economy struggles to build momentum but also to tamp down inflation outright. ECB President Christine Lagarde last week signaled no further action before December as the ECB cut rates for the second time this year. While ECB Chief Economist Ryan confirmed on Monday that policymakers "should remain selective" about an October rate cut, hawks on the Governing Council stressed that "a major shift would be needed" to consider a back-to-back rate cut approach.