According to ChainCatcher, ECB Vice President Guindos said that the ECB interest rate will be further lowered, but officials should not act hastily due to uncertainties such as escalating trade tensions and global conflicts.
Earlier, the ECB warned in its Financial Stability Assessment that trade now poses an additional threat to the economies of the 20 eurozone countries. In his speech, Guindos expressed confidence in achieving the 2% inflation target next year and refuted the claim that inflation would be lower than the target. With less than four weeks to the last interest rate meeting of the year, investors expect borrowing costs to be cut for the fourth time since June. Although further monetary easing seems likely in 2025, the pace and magnitude of rate cuts remain uncertain and are increasingly controversial among policymakers.