If economic risks materialize, there could be discussions about larger interest rate cuts, according to Mario Centeno, a member of the European Central Bank Governing Council.
Centeno prefers a gradual approach to rate adjustments and believes that steady and predictable steps in monetary policy are important. He expressed concerns about potential threats to the region's economy, specifically mentioning US trade tariffs as a significant factor. If these risks increase, the ECB may need to consider more aggressive measures in addition to the quarter-point reductions that have already been implemented.