Restrictive or not, the ECB’s policy warrants further easing

Tomorrow, some ECB governors will enter the Council meeting room with one goal: to revise the press release so that monetary policy is no longer described as "restrictive". If the hawks get their way, it may not be the end of the policy rate cut cycle, but the pace of cuts could be slowed. Rather than debate semantics, it is reasonable to assume that the majority of Governors considers it more important to examine the risks weighing on the eurozone. These risks are downside to growth, and in turn, downside to inflation. Monetary policy needs to be further eased to facilitate the investment stimulus efforts that are taking shape.