European Central Bank Vice President: Interest rates will be further lowered, but caution is needed due to various uncertainties

ChainCatcher news, ECB Vice President Guindos stated that the European Central Bank's interest rates will be further lowered, but due to escalating trade tensions and global conflicts, officials should not act hastily.

Previously, the European Central Bank warned in its "Financial Stability Assessment" that trade now poses an additional threat to the economies of the 20 Eurozone countries. Guindos expressed confidence in achieving the 2% inflation target next year and dismissed claims that inflation would fall below this target. With less than four weeks until the last interest rate meeting of the year, investors expect the borrowing costs to be lowered for the fourth time since June. Although further easing of monetary policy seems possible in 2025, the pace and extent of rate cuts remain uncertain, and disputes among policymakers are increasing.