ECB’s Cipollone Is Seeing ‘Conflicting Signals’ in Economy

European Central Bank Executive Board member Piero Cipollone said the economy is sending “conflicting signals” as officials wait for more clarity before taking a fresh view on whether interest rates need to be lowered any further.

In an interview with Slovenian newspaper Delo, Cipollone said weak consumer confidence is a threat to consumption, “while continued uncertainty and the unwinding of frontloading effects could weigh on business investment and exports.” At the same time, he highlighted a resilient labor market and plans for higher defense and infrastructure spending that should boost activity over time.