ECB meeting notes cautious stance on further easing

ECB policymakers appeared satisfied with lower inflation at last month's meeting, but argued for a gradual easing in light of continued pressure, according to European Central Bank meeting notes. The ECB cut interest rates last month and said it would be open to October, but many policymakers have made the case for follow-through, suggesting that next week's rate cut is almost a DingTalk on the board and that the real debate will take place around December. "The path to the 2 per cent target lies mainly in lower wage growth and an acceleration in productivity growth to levels not seen in many years and above historical averages," the ECB said in its minutes. "Careful monitoring is therefore needed for the timely stabilization of inflation at sustainable target levels." With inflation already close to its 2 percent target, the central bank has cut interest rates twice, saying further cuts were only a matter of time given weak economic growth, easing price pressures and slowing wage growth.