Finance
ECB's Escriva sees scope for minor monetary policy easing
Published by Global Banking & Finance Review®
Posted on June 8, 2025
2 min readLast updated: January 23, 2026
Quick Summary
ECB's Jose Luis Escriva discusses potential minor easing in euro zone monetary policy amid inflation and economic growth forecasts.
ECB's Escriva Discusses Potential for Minor Easing in Monetary Policy
MADRID (Reuters) -The path of monetary policy easing in the euro zone could require further adjustments if the current macroeconomic and inflation outlooks are confirmed, ECB policymaker Jose Luis Escriva said.
Last week, the ECB cut interest rates and hinted at a pause after inflation in the euro zone returned to its 2% target.
Escriva, who is also Bank of Spain Governor, said in an interview to newspaper El Pais on Sunday that he "was very comfortable" with the current, gradual approach of successive 25-basis-point rate cuts.
"Our central scenario – GDP growth of around 1%, inflation of 2% – could require some fine-tuning if it is confirmed," Escriva.
The ECB has cut rates 2 percentage points since last June, to prop up a euro zone economy also hit by erratic U.S. economic and trade policies.
Escriva said confidence in the dollar and U.S. assets had decreased since U.S. President Donald Trump took office and that since April, the dollar had not been a "safe haven" and its dominance as a global reserve currency appeared to have peaked.
He also said the Bank of Spain was expected to revise downwards on Tuesday the forecast for Spanish economic growth by a few decimal points from the current 2.7% for 2025.
(Reporting by Jesús Aguado and Graham Keeley; Editing by Bernadette Baum)
Key Takeaways
- •ECB may adjust monetary policy based on economic outlook.
- •Interest rates cut by 2 percentage points since last June.
- •Confidence in the dollar has decreased under Trump.
- •Euro zone inflation has returned to 2% target.
- •Spanish economic growth forecast may be revised down.
Frequently Asked Questions about ECB's Escriva sees scope for minor monetary policy easing
1What did the ECB do last week regarding interest rates?
Last week, the ECB cut interest rates and hinted at a pause after inflation in the euro zone returned to its 2% target.
2What is the current GDP growth forecast mentioned by Escriva?
Escriva mentioned a central scenario of GDP growth of around 1%.
3How much have ECB rates been cut since last June?
The ECB has cut rates by 2 percentage points since last June to support the euro zone economy.
4What impact has U.S. economic policy had on the euro zone?
Escriva noted that the euro zone economy has been affected by erratic U.S. economic and trade policies.
5What is the expected revision for Spanish economic growth?
The Bank of Spain is expected to revise downwards the forecast for Spanish economic growth by a few decimal points from the current 2.7% for 2025.
