ECB’s de Guindos: Inflation Expected to Keep Falling in the Next Months
31 October 2023
By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Vice President Luis de Guindos on Tuesday said that inflation was expected to decrease as a consequence of the current level of interest rates.
Speaking to students of Madrid’s ICADE University during an online colloquium, de Guindos said that ‘inflation is expected to continue to slow down in the next months.’
‘In the last Governing Council meeting, we decided to stop raising interest rates’, he said. ‘The message here is that if we keep rates at this level, inflation will eventually converge to our price stability definition of 2%.’
The transmission of monetary policy was almost completed, he said, citing the fall in demand for credit, though he noted that it varied from country to country.
‘Monetary policy transmission usually operates with delays in the Eurozone because countries have different structures, and the impacts are variable’, he said.