Central Banks
ECB’s Cipollone Sees Scope to Cut Swiftly Despite Wage Gains
- Executive Board member gives policy speech in Brussels
- Officials seem to be set to lower interest rates in June
Piero Cipollone
Photographer: Claudio Antonio De Angelis/ECBThis article is for subscribers only.
The European Central Bank may be able to lower interest rates “swiftly” even as workers receive large wage increases to catch up with two years of elevated inflation, according to Executive Board member Piero Cipollone.
A recovery in salaries is needed for Europe’s struggling economy to regain some momentum, the Italian official said Wednesday, stressing that pay rises should moderate with time. Inflation, meanwhile, is retreating, meaning the point at which monetary settings can be loosened is nearing, he said.