ECB’s de Guindos: We have been crystal clear on June rate cut

During a European Parliament hearing today, ECB Vice President Luis de Guindos stated that ECB has been “crystal clear” on its conditional guidance regarding interest rate cut.

“If things continue as they have been evolving lately, in June we’ll be ready to reduce the restriction of our monetary policy stance,” he said.

While financial markets anticipate a total of 75bps in rate cuts for the year, de Guindos remained non-committal about specific future rate levels.

He pointed out several risks to inflation outlook, including wage dynamics, productivity, unit labor costs, profit margins, and geopolitical tensions.