Risks to the euro zone inflation outlook remain balanced as the changes since June broadly offset each other, European Central Bank board member Piero Cipollone said in a newspaper interview.

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.

Policymakers must remain agile, noting that the stronger euro was having a significant disinflationary effect, Bank of France Governor Francois Villeroy de Galhau said.

In notes dated July 24, Goldman said it no longer expects the ECB to deliver a rate cut this year, while J.P. Morgan has pushed its rate-cut forecast to October from September previously. On Thursday, the ECB held policy rates unchanged at 2% after having cut interest rates eight times since June 2024.

BNP Paribas economists are no longer calling for a 25 basis point cut from the European Central Bank in September following the press conference from ECB chief Christine Lagarde. BNP said Lagarde played down an undershooting of ECB staff inflation forecasts,