Headline: ECB/Escriva: No Indication of Eurozone Inflation Deviating from Current Forecasts

ECB Governing Council member and Spanish Central Bank President Jose Luis Escriva stated that there is not yet sufficient indication that inflation in the Eurozone could deviate enough to alter the European Central Bank's main scenario regarding further rate cuts. Speaking to the Spanish newspaper Expansion, Escriva was asked about the risks of inflation coming under significant pressure before the October 17th rate cut, potentially falling below the Central Bank's target of 2%. Escriva noted, “Currently, the data indicates that we are approaching the inflation target along the path envisioned in the September macroeconomic projections.”

He emphasized that the balance of risks included in ECB's latest projections, following the decision made five days prior, suggested that inflation could be “slightly higher than expected and vice versa.” However, Escriva also mentioned that there are no signs of additional risks that could cause inflation to fluctuate more than the ECB's current assessment. When asked about the possibility of rates being cut again or remaining unchanged in December, he stressed the importance of maintaining a flexible and data-dependent approach, stating, “everything will need to be evaluated and decided at that time.”