ECB Governing Council member Madis Muller said today he does not anticipate any further hikes in interest rates for the time being.
The significant question is on the duration for which borrowing costs might remain at heightened levels. Expounding on this, he mentioned, “will depend on how the euro-area economy develops over the year and how the slowing of inflation plays out.”
Highlighting the current economic climate, Muller stated, “Right now, we see that the economic situation is relatively weak in the euro area as a whole.”
He, however, expressed a cautious optimism about the region’s economic future, noting the potential for modest improvements. ”
Looking forward, it could start improving slightly. If the recovery is slower, then that means smaller pressures in terms of inflation,” Muller added.
