ECB would need ‘powerful’ data for big rate cuts, Makhlouf says

The comments add to a debate on whether borrowing costs could be lowered by half a percentage point when officials next meet in December

Makhlouf agreed that it’s no longer necessary for the ECB to hold back the economy with high rates, but added that policymakers should remain “prudent.” Photograph: Leah Farrell / © RollingNews.ie

The European Central Bank (ECB) should reserve big interest-rate cuts for exceptional circumstances, according to Governing Council member Gabriel Makhlouf, who said he prefers a “cautious” approach to ensure that inflation’s retreat to 2% stays on track.

“The data has to be very powerful for me to feel that I need a leap,” the Irish central-bank chief said in an interview on the sidelines of the International Monetary Fund’s annual meetings in Washington.