DUBLIN, Jan 30 (Reuters) – The European Central Bank (ECB) should keep its options open on its rate path, governing council member Gabriel Makhlouf said on Tuesday, noting that past rate hikes continue to be transmitted “forcefully” and slow down demand.
Although the short-term outlook for the Eurozone suggests stagnating activity in the face of tighter financing conditions, weak business and consumer confidence and weak export demand, the economy is expected to gradually recover. with growth in the medium term, he said.
“Going forward, we should remain open-minded on the path of rates, the essence of data dependence. With disinflation well underway, we are confident that we can sustainably achieve our target of 2 %,” said Gabriel Makhlouf, the head of the Irish central bank, during a speech. (Editor Padraic Halpin; French version Corentin Chappron, edited by Kate Entringer)
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