Gabriel Makhlouf Weighs in on ECB Rate Cut Expectations

European Central Bank governing council member Gabriel Makhlouf expressed that he is 'not uncomfortable' with market expectations for minor rate cuts over the next 18 months. Makhlouf emphasized that future rate decisions shouldn't focus solely on wages but also consider global conflicts, climate change impacts, and fiscal policy in Europe.

European Central Bank governing council member Gabriel Makhlouf said on Tuesday that he was "not uncomfortable" with market expectations for little more than one rate cut over the second half of the year, and between three and four moves over the next 18 months.

Makhlouf, Ireland's central bank chief, added that future rate decisions were not just all about wages and that policymakers needed to keep a close eye on the risks from global conflicts, as well as the impact of climate change on food prices and the path of fiscal policy in Europe.

"I'm not uncomfortable with it (market pricing), in the end what we're focussed on is our own views of what's happening the outlook, what's happening the underlying dynamics, what's happening the transmission," Makhlouf told a news conference.