European Central Bank Meeting Minutes: Interest Rate level is robust enough to withstand shocks.

Jin10 data reported on October 9th that the European Central Bank's meeting minutes showed that the ECB's decision-makers are not in a hurry to cut interest rates again, although they are acutely aware of the exceptionally high uncertainty and risks. The ECB kept interest rates unchanged in September and even provided a mildly optimistic assessment of the Eurozone economy, suggesting that the threshold for further easing is high, even as U.S. tariffs continue to cast a shadow over the outlook. The minutes stated: “Given the two-sided risks to inflation, and considering various possible scenarios, the current level of rates should be seen as sufficiently robust in managing shocks.” Since the meeting, the possibility of further rate cuts has decreased due to relatively mild data and ECB President Lagarde's indication that the uncertainty range for inflation prospects is narrowing. The minutes noted: “The current situation is likely to undergo a significant change at some point, but it is currently difficult to determine when and in which direction the change will occur. The strategy of continuing to wait for more information remains highly valuable.” However, considering the large number of downside risks, the door to further easing has not been completely closed.