ECB Vice-President Luis de Guindos said in an interview, regarding how high are interest rates going to go, “that is something we will decide meeting by meeting and on the basis of incoming data, given the current high uncertainty.
“As we announced this month, there will be further, necessary, rate hikes until inflation is on a path back to close to our 2% target,” he added.
Regarding the economy, de Guindos said Europe is currently in a “very difficult economic situation”, with “high inflation rates… coinciding with an economic slowdown and low growth. With a recession on the horizon, the current high uncertainty makes it all the more difficult for businesses and entrepreneurs to distribute their capital. So, against this backdrop, it is very important to be prudent.”
