Gabriel Makhlouf, a member of the European Central Bank Governing Council, stressed the importance of having strong data before considering significant interest rate cuts.
Speaking at the International Monetary Fund's annual meetings in Washington, Makhlouf advocated for a cautious approach to monetary policy, emphasizing the need to keep inflation at the target rate of 2%.
He mentioned that substantial rate reductions would only be supported under exceptional circumstances, highlighting the requirement for robust economic indicators to justify such a move. This position reflects the broader commitment of the ECB to maintain control over inflation while navigating the complexities of the current economic landscape.