Finance
ECB's rates at right level barring deviations, ECB VP says
Published by Global Banking & Finance Review®
Posted on November 10, 2025
1 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 10, 2025
1 min readLast updated: January 21, 2026
ECB Vice President Luis de Guindos confirms current interest rates are suitable, with potential changes if economic conditions shift.
FRANKFURT (Reuters) -The European Central Bank's interest rates are at the appropriate level barring changes in the economic situation, the ECB's Vice President Luis de Guindos said in an interview published on Monday.
"If inflation developments deviate, or if projections are modified, and if transmission is not correct, then we may change," de Guindos told Portuguese daily Diário de Notícias. "But so far, we firmly believe that the level of interest rates is correct."
He said the ECB needed to remain "very prudent and cautious" when setting rates even though the level of uncertainty, especially after a trade deal between the European Union and the U.S., had decreased in the past six months.
(Reporting by Francesco Canepa; Editing by Chris Reese)
The European Central Bank (ECB) is the central bank for the eurozone, responsible for monetary policy and maintaining price stability within the euro area.
Interest rates are the cost of borrowing money, expressed as a percentage of the total loan amount, and are set by central banks to influence economic activity.
Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates to achieve macroeconomic objectives like controlling inflation.
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