The ECB has no fixed date to cut interest rates, says De Guindos

The European Central Bank has not set a date to cut interest rates and expectations of a reduction in June next year are just market bets that could easily turn out to be wrong, ECB Vice President Luis de Guindos said on Friday.

“Inflation will continue to fall, both core and general. The markets discount, and the markets can even be wrong, they are based on a series of hypotheses that sometimes do not come true, that we will start reducing rates in June 2024. It is a gamble, which may be right and may not be right,” he told radio station Cadena Cope.

“It will depend on many factors, it will depend on the data,” he said.

The ECB raised its main interest rate to a record 4% on Thursday and signaled that its latest increase will likely be the last as the euro zone economy slows after more than a year of monetary tightening to reduce the inflation.

“What I’m saying is, with this latest increase that we made yesterday, if the level of interest rates is maintained over time, we think it could be enough for inflation to actually converge towards our 2% target,” He added.

Source: Terra

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