“We will cut rates if we are convinced that inflation will converge to our 2% target,” the ECB vice-president stressed.
The Vice President of the European Central Bank (ECB), Luis de Guindos, assured this Monday that the institution “does not have any calendar” to cut interest rates. interest rates and that this decision will depend on the facts and of the evolution of inflation.
‘We will cut rates if we are convinced that inflation will converge towards ours 2% target“Guindos emphasized in statements to RNE.
The Vice President of the ECB has stated that inflation “It’s dropped a lot” and will continue to moderate because “the underlying trends in inflation, which are the most permanent signs of how it will develop in the near future, point to a downward trend.”
“They are good news because the main economic problem that we have experienced in Europe over the past two years has undoubtedly been very high inflation, which has seriously eroded the purchasing power and especially the purchasing power of everyone on a lower income. Therefore, it is good news in terms of the development of inflation and that will sooner or later be reflected in monetary policy,” he noted.
Asked if rates will be reduced summerGuindos has made it clear that the ECB “does not have any calendar” and that “it will depend on the data.”
However, he has recognized that there are “risks” such as crisis in the Middle East and the Red Seawhich could affect transport costs, but also the development of unit labor costs, linked to the development of wages and “with very low productivity in Europe”, which could lead to companies ultimately transferring these costs increase in costs to prices.
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
