ECB unsure if easing cycle is over, says Luis de Guindos.
The vice president of the European Central Bank has said that policymakers are following a "very prudent" approach after last week's decision to hold interest rates, suggesting that a further rate cut in the current easing cycle could still be on the table.
Source: Sharecast
“We do not know if the easing cycle is over,” said Luis de Guindos in a livestreamed MNI Connect discussion in London. “If circumstances change, then we will change.”
He said the ECB was seeing very positive news on inflation and that the present policy stance – last wee, interest rates were kept at 2% for the second consecutive meeting – was appropriate.
The eurozone economy is showing resilience amid higher trade tariffs on exports to the US, along with other macro uncertainties, he said.
However, de Guindos added that equity valuations are currently very high due to investors' "benign" view on macro risks.
Compare our accounts
If you're looking to grow your money over the longer term (5+ years), we have a range of investment choices to help.
Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.
