European Central Bank policymakers split on the need for jumbo rate cuts as growth concerns take over

Policymakers at the European Central Bank are split on the need to consider a jumbo half-point interest rate cut in December, even as downside risks dominate on both economic growth and inflation.

The comments come shortly after the ECB delivered back-to-back interest rate cuts for the first time in 13 years at its October meeting.

The move, which marked the central bank's third quarter-point cut this year, had been fully priced in by markets after decision-makers flagged reduced inflation risks and a weakening growth outlook.

"The truth is that the print of inflation in September was very low, way lower than what we were expecting," Portuguese central bank chief Mario Centeno told CNBC's Karen Tso on Wednesday.

"We need to take that into our story," Centeno said. "After that, we need to look at the incoming data, the trend in the data that we have been observing and certainly 50 basis points can be on the table because we continue to be data dependent and the data we are getting points in that direction."

Inflation in the euro zone was recently revised to 1.7% in September, down from an earlier official estimate of 1.8%. It compares to a print of 2.2% in August.

September was the first month when inflation in the euro zone fell below the ECB's 2% target since June 2021, marking an end to years of excessive price growth and reinforcing expectations of further rate cuts in the near term.

Alongside Centeno, Dutch ECB Governing Council member Klaas Knot said a half-point interest rate cut could not be excluded at the central bank's December meeting. He added, however, that such a move would require some deterioration in the data.

"I think we are pretty confident about the return of inflation to our 2% target somewhere in the course