Published by Global Banking & Finance Review®
Posted on December 19, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleECB's Escriva expects interest rates to remain steady, with euro zone growth exceeding expectations and inflation near the 2% target.
MADRID, Dec 19 (Reuters) - ECB policymaker Jose Luis Escriva said on Friday he saw no reason for a change in interest rates and that he expected monetary policy to remain steady in the foreseeable future.
The European Central Bank kept its policy rates steady on Thursday and revised upwards some of its growth and inflation projections, a move that probably closes the door to further cuts in borrowing costs in the near term.
Asked about a potential next move on rates, Escriva said in an interview with Spanish broadcaster TVE: "We don't know but we are open to any movement, in any direction if necessary, but for the moment we are very comfortable with the current level of 2%."
Recent growth figures for the euro zone have outpaced the ECB's expectations, buoyed by exporters navigating U.S. tariffs more effectively than anticipated and by domestic spending that has offset a malaise in manufacturing.
Inflation has meanwhile hovered around the central bank's 2% target, boosted by price hikes in the services sector, and is expected to stay there for the foreseeable future.
The more upbeat outlook has already led investors to draw a line under an easing cycle that saw the ECB halve its policy rate from 4% to 2% in the year to last June.
(Reporting by Jesús Aguado and Jesús Calero; editing by Victoria Waldersee and Gareth Jones)
Monetary policy refers to the actions taken by a central bank to control the money supply and interest rates in an economy to achieve macroeconomic goals such as controlling inflation, consumption, growth, and liquidity.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage of the principal amount. They are influenced by central bank policies and economic conditions.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Central banks aim to control inflation to maintain economic stability.
The European Central Bank (ECB) is the central bank for the euro and is responsible for monetary policy within the Eurozone, aiming to maintain price stability and oversee the banking system.
Economic growth refers to the increase in the production of goods and services in an economy over time, typically measured by the rise in Gross Domestic Product (GDP).
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