Spanish Minister Hints at ECB Rate Cut Amid Inflating Moderation

Spanish Economy Minister Carlos Cuerpo suggests the European Central Bank may cut interest rates again due to easing inflation. Speaking at a G20 finance meeting, he noted that the ECB's September meeting remains open for adjustments. Domestic negotiations for Spain's central bank leadership continue.

Spanish Economy Minister Carlos Cuerpo indicated that easing inflation data could lead to another rate cut by the European Central Bank (ECB). Speaking during a G20 finance meeting in Brazil, Cuerpo remarked that the ECB had kept rates steady last week but hinted at potential changes in the September meeting.

In an interview, Cuerpo emphasized the importance of data, noting that moderating inflation trends could enable the ECB to reduce rates further. He also highlighted concerns over potential inflationary pressures stemming from the upcoming U.S. elections and ongoing actions by the Federal Reserve.

Domestically, Cuerpo stated that there was no rush in negotiations for appointing Spain's central bank chief and a deputy, following the end of Margarita Delgado's term in September. He stressed the importance of maintaining traditional deliberations for these appointments.

(With inputs from agencies.)