ECB minutes: cautious stance on further policy easing

ECB policymakers appeared satisfied with the fall in inflation at last month's meeting but advocated a gradual easing of policy given the pressures that remain, minutes from the ECB meeting on October 10th showed. The ECB cut rates last month and said it would keep an open mind about October, but many policymakers have made the case for a follow-up, suggesting that next week's cut is almost a done deal and that the real debate will happen around December. In its minutes, the ECB said:- “The path to the 2% target rests largely on lower wage growth and an acceleration in productivity growth to levels not seen for many years and above historical averages. Therefore, the ability of inflation to stabilize at a sustainable target level in a timely manner needs to be carefully monitored.” The central bank has already cut interest rates twice as inflation has moved closer to its 2% target. The central bank said it was only a matter of time before further rate cuts were made in light of weaker economic growth, easing price pressures and slower wage growth.