ECB will start cutting rates sooner or later as inflation eases, De Guindos says

29 Jan, 2024

MADRID: The European Central Bank will cut interest ratees sooner or later given recent encouraging inflation evolution in the euro zone, the ECB’s Vice-President Luis de Guindos said on Monday.

“(There are) good news regarding inflation developments and this will sooner or later be reflected in (our) monetary policy,” De Guindos told Spanish radio station RNE.

ECB keeps rates unchanged

He gave however no hint when policymakers would start easing monetary policy, though added that the institution would cut rates “when are sure that inflation meets our 2% goal.”

The European Central Bank held rates steady at a record high on Thursday and battled back talk of cuts despite a raft of indicators showing that economic growth and price pressures are softening.

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