European Central Bank Governing Council member Mario Centeno said on Tuesday that the process of lowering interest rates is ongoing. He noted that the euro area's inflation rate in September was lower than the ECB and markets expected and, as a result, markets now have a position regarding next week’s ECB decision that is different from the one that prevailed a few weeks ago.
The official also said that the cycle of interest rate cuts, which has begun, will be faster than thought in June.
At the same time, Centeno noted that the ECB's policymakers have to be cautious and maintain gradualism in decisions. He stressed that the most important word in economic policy is "gradualism," adding that big steps usually give big surprises and the ECB shouldn’t do that.