cubecrash| European Central Bank Kindos: Internal debate escalates after not committing to future actions after interest rate cuts in June

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European Central Bank Vice President Guindos made it clear that no further action was promised after the interest rate cut in June and would rely on data to determine the future policy path.

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[European Central Bank Vice President Guindos: no further rate cuts are promised after the rate cut in June] on May 9, European Central Bank Vice President Louis de Guindos announced that it is expected to be implemented in June.CubecrashAfter the interest rate cut, the central bank will not make a commitment to follow-up interest rate cuts. Mr Guindos stressed that the ECB had maintained a clear position on the upcoming June rate cut and would convey a transparent message to the market. Mr Guindos said policy decisions after interest rate cuts would depend on the performance of economic data and the central bank did not intend to commit to any established path of interest rate cuts in advance. The statement immediately triggered widespread speculation about the future policy direction of the ECB. In fact, divisions have emerged within the ECB over the direction of monetary policy after the interest rate cut in June. On the one hand, due to the mild recession last year, some committee members are inclined to cut interest rates further to stimulate economic recovery.CubecrashOn the other hand, concerns about uncertain factors such as wage growth have also made some committee members cautious about further interest rate cuts. The final decision of the ECB will undoubtedly be the focus of market attention.