In an interview with Helsingin Sanomat, ECB Vice President Luis de Guindos acknowledged the shifting priorities of the ECB as inflation continues to decline.
Inflation is expected to return to the medium-term target of 2% by 2025. At the same time, economic growth remains very weak. So “concerns about high inflation have shifted to economic growth”. he said.
Additionally, he highlighted the rising challenges posed by “geopolitical risks” and uncertainty surrounding US. trade and fiscal policies, which could have broader implications for the Eurozone economy.
Looking ahead, ECB’s December projections will offer further clarity, but De Guindos reiterated that if current forecasts hold, the central bank will “continue making our monetary policy stance less restrictive.”
De Guindos stressed the importance of a cautious, data-driven approach in such uncertain conditions, noting that “it’s difficult to make predictions about the specific number and size of rate cuts.” However, with inflation moving closer to the medium-term target, ECB appears set to maintain its easing bias.
