The European Central Bank (ECB) may be gearing up for further rate cuts as board member Luigi Cipollone signals the need for more action to bolster economic recovery. Speaking to financial leaders, Cipollone emphasized that the current policy stance may not be sufficient to combat slowing growth, suggesting the central bank should consider additional rate reductions in the near term.
Cipollone’s comments reflect growing concerns within the ECB over weak demand and persistent inflationary pressures. The central bank recently paused its aggressive rate-hiking cycle, but economic challenges remain, including stagnant industrial output and sluggish consumer spending. Analysts expect these remarks to heighten speculation around the ECB’s next policy moves as markets await December’s monetary policy meeting.
