In a recent statement, European Central Bank (ECB) Vice President Luis de Guindos affirmed the ECB’s commitment to reducing interest rates once inflation aligns with the target of 2%. De Guindos expressed optimism regarding recent positive developments in inflation and anticipated that these favorable trends would eventually be reflected in the ECB’s monetary policy decisions.
“We will cut interest rates when we are sure that inflation meets our 2% goal,” stated Vice President Luis de Guindos, highlighting the cautious approach the ECB plans to adopt in adjusting interest rates.
De Guindos acknowledged encouraging news on the inflation front and expressed confidence that these positive indicators would influence the ECB’s monetary policy considerations. He conveyed optimism not only about overall inflation but also specifically mentioned his positive outlook on core inflation.
Market Reaction:
As of the latest update, the EUR/USD currency pair is maintaining a steady range near 1.0850, showing a marginal decline of 0.06% for the day. The market appears to be assessing the implications of the ECB’s stance on potential interest rate adjustments in response to evolving inflation dynamics. Traders are likely monitoring inflation data closely for further insights into the ECB’s future policy decisions.
