ECB may be able to cut interest rates 'swiftly' 

With inflation retreating, the point at which monetary settings can be loosened is nearing, even as workers receive pay increases, ECB official said

While officials in Frankfurt are largely in agreement about starting rate cuts at June’s meeting, there appears to be less harmony on how quickly borrowing costs should fall as uncertainty over inflation remains elevated.

The European Central Bank may be able to lower interest rates “swiftly” even as workers receive large wage increases to catch up with two years of elevated inflation, according to executive board member Piero Cipollone.

A recovery in salaries is needed for Europe’s struggling economy to regain some momentum, the Italian official said, stressing pay rises should moderate with time. Inflation, meanwhile, is retreating, meaning the point at which monetary settings can be loosened is nearing, he said.