ECB policymakers' views converging on Sept rate cut, sources say
European Central Bank policymakers are lining up behind another interest rate cut in September and only major data surprises in the coming weeks could delay the move, on and off record conversations with seven sources indicate.
Financial markets already overwhelmingly expect a fresh rate cut next month, but policymakers have been circumspect on their next move after the central bank was criticised by some for too overtly committing itself before its first rate cut back in June.
A raft of figures on growth, wages and prices in recent weeks has started to sway them and many are increasingly open to discussing their views, arguing that conditions laid out for a cut are being fulfilled.
The sources, who are familiar with the discussion said they are open to another cut on Sept. 12, listed a host of arguments: price pressures are easing as projected, economic growth is falling short of expectations, wage growth is softening and the U.S. Federal Reserve's signals about its own easing make the ECB's job easier.
«We are largely where we want to be,» Latvian policymaker Martins Kazaks said when asked about a cut in September.
«Our June projections assumed two more rate cuts this year and right now I don't see any reason why we shouldn't follow through,» said Kazaks, just days after Finland's Olli Rehn already made the case for a cut next month.
The other sources, who declined to be named, said private, informal conversations are showing broad support for the move, even if most are still awaiting further data before
