Central Banks

ECB Officials Get Cautious on More Cuts as Wages Pick Up

  • Policymakers signal return to watchful phase on inflation
  • Irish governor wonders aloud if another move will materialize
WATCH: ECB President Christine Lagarde says current policy is restrictive and the timing and speed of rate cuts will be based on incoming data.Source: Bloomberg

European Central Bank officials offered wary views on further interest-rate cuts at a time when pay pressures are proving stubborn, with one even raising the prospect that another move won’t materialize.

A day after the Governing Council delivered on its promise to lower rates but revealed a consumer-price forecast that left investors querying where policy is headed next, data showed accelerating wage increases — and governors signaled that they’re now back in a watchful phase.