ECB’s rates at right level barring deviations, ECB VP says

FRANKFURT: The European Central Bank’s interest rates are at the appropriate level barring changes in the economic situation, the ECB’s Vice President Luis de Guindos said in an interview published on Monday.

“If inflation developments deviate, or if projections are modified, and if transmission is not correct, then we may change,” de Guindos told Portuguese daily Diário de Notícias. “But so far, we firmly believe that the level of interest rates is correct.”

He said the ECB needed to remain “very prudent and cautious” when setting rates even though the level of uncertainty, especially after a trade deal between the European Union and the U.S., had decreased in the past six months.