European Central Bank Governing Council member Rehn stated on Tuesday that today's eurozone CPI data provided further confirmation that inflation in the region is slowing down. The official added that this, in his view, means that there have been more grounds for another rate cut at the ECB's October meeting. "The recent weakening of the euro area’s growth prospects tilts the scales in the same direction,” he noted.
Hower, Rehn stressed that the ECB's policymakers should follow the incoming data closely and perform a comprehensive analysis before making decisions.
In addition, Rehn noted that the prevailing headwinds for economic growth do not allow him to declare that a soft landing is ensured. He also stressed that this fact should be taken into account in the ECB's future decisions on policy.