ECB’s Vice President Dismisses Talks of Lowering Borrowing Costs

The European Central Bank’s Vice President, Luis de Guindos, has dismissed talks of lowering borrowing costs in the near future as ‘clearly premature.’ In an interview with Slovenia’s Finance newspaper, Guindos emphasized that the current approach is to maintain interest rates at their current level for an extended period to achieve the inflation target. He highlighted the ongoing upside risks to inflation and stated that any discussion about reducing interest rates is premature. This indicates a cautious approach by the ECB in light of evolving economic conditions.