Published by Global Banking & Finance Review®
Posted on May 2, 2025
1 min readLast updated: January 24, 2026
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ECB's Luis de Guindos is optimistic about continued rate cuts, with inflation nearing target despite economic challenges from U.S. tariffs.
BERLIN (Reuters) -There is reason to be optimistic about the European Central Bank's current phase of rate cuts continuing, Vice President Luis de Guindos said in an interview to be published in the Saturday edition of Austria's Die Presse newspaper.
The ECB cut interest rates for the seventh time in a year last month and warned that economic growth will take a big hit from U.S. tariffs, bolstering bets for even more policy easing in the months ahead.
"It depends on how inflation develops. But we can be optimistic here," de Guindos said, when asked how long the phase of interest rate cuts would continue.
"According to our latest forecasts, inflation will be very close to our target of 2% from the end of the year," he said in the interview published online on Friday.
(Writing by Miranda Murray; Editing by Kirsten Donovan)
The article discusses ECB's optimism about continued interest rate cuts and economic challenges.
The ECB is cutting rates to stimulate economic growth and manage inflation near its 2% target.
Luis de Guindos is the Vice President of the European Central Bank.
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