FRANKFURT (Reuters) -Risks to the euro zone inflation outlook remain balanced as the changes since June broadly offset each other, European Central Bank board member Piero Cipollone said in a newspaper interview.
The ECB left interest rates unchanged on Thursday and said the outlook for inflation is more uncertain than usual, even if the economy has appeared to remain resilient.
Some policymakers argued the outlook for inflation has now worsened and risks were tilted to undershooting, but Cipollone said the broader Governing Council view did not change.
“We now see an additional appreciation of the euro and a slight increase in energy costs,” he told Slovenian newspaper Delo in an interview published on Saturday. “The overall assessment therefore stays the same.”
He added that trade tensions have increased but the global economy has so far been resilient.
“Overall, it seems to me that the June assessment can be confirmed and that inflation expectations are balanced,” Cipollone said.
The ECB has halved its key rate to 2% since June 2024 but its moderately sanguine tone on Thursday was seen as a signal it was not in any hurry to cut again.
Markets now see roughly a 50% chance of more rate cuts this year, with some economists saying the easing cycle may be over.
(Reporting by Balazs Koranyi; Editing by Tom Hogue)
