Guindos points out that the ECB does not have a path to lower rates and will go "meeting to meeting"

September 13 () –

The vice-president of the European Central Bank (ECB), Luis de Guindos, said on Friday that the institution has “no predetermined path for lowering interest rates”, and will therefore go “meeting by meeting” once yesterday it decided to lower interest rates by 25 basis points, so that the deposit rate (DFR) will remain at 3.50%.

In an interview on Cadena Cope, which Europa Press has reported, Guindos recalled that this is the second rate cut by the ECB “and it is fundamentally a consequence of the evolution of inflation”, which two years ago was at 10% and is now slightly above 2% in the Eurozone.

He said that the ECB will now be watching to ensure that the fall in inflation “is stable over time” and that, in some way, it finally converges on a “definition of price stability”, which in his opinion is 2%. “They indicate that this could happen at the end of 2025, although there are always elements in which the fall in inflation is more difficult,” he said.

Asked specifically whether the rate cuts will continue in the coming months, the ECB vice president reiterated that the direction of monetary policy “will be in line with inflation projections.”

Guindos has acknowledged that there is still a “level of uncertainty” because “there is a part of inflation that is showing resistance to falling.” “We do not have any predetermined path for lowering rates, we will go from meeting to meeting and depending on how the data is produced and the analysis we are carrying out,” he added.

“I would say that we need to be cautious, although I would also say that the direction of monetary policy in the coming quarters will be what it is,” he concluded.