FRANKFURT (Reuters) -European Central Bank policymakers see their December meeting as the most realistic time frame to debate whether an another interest rate cut is needed to buffer the euro zone economy from the impact of U.S. tariffs, three sources told Reuters.
The ECB left rates unchanged on Thursday and maintained an upbeat view on growth and inflation, dampening expectations for any further cut in borrowing costs.
But sources on the ECB’s Governing Council said the debate on a rate cut was not over just yet, although policymakers probably won’t have enough information by their next meeting in October 29 to make a proper assessment.
This meant that the December 18 meeting was seen as the more likely date to discuss a reduction in borrowing costs, also in light of incoming inflation and growth data and the next batch of projections.
An ECB spokesperson declined to comment.
(Reporting By Francesco Canepa, Balazs Koranyi and Frank Siebelt)
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