ECB’s de Guindos: Difference Between 50BP and 25BP ‘Almost Nonexistent’

29 November 2024

By Marta Vilar – S’AGARÓ, SPAIN (Econostream) – European Central Bank Vice President Luis de Guindos said on Friday that the December monetary policy meeting of the ECB Governing Council would deliver just ‘one more step’ on the downward trajectory of interest rates.

In an on-stage conversation at the Encuentro de Economía organised by Fundación Olof Palme in S’Agaró, Spain, de Guindos downplayed the importance of the size of the December move by the ECB.

‘We’ll see what the projections show, but the trajectory of interest rates is much more important’, he said.

As long as the projections materialised, the trajectory of interest rates would be downward, he stated.

‘In the medium term the trend and the trajectory is clear, and December will be one more step’, he said. ‘In terms of real impact, the difference between doing a 50bp cut and two 25bp cuts is very limited, almost inexistent’.

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• ECB’s de Guindos: CPI Data in Line With Our Expectations, Data Are Positive
• ECB’s de Guindos: Indirect Inflation from Taris Could Become More Permanent
• ECB’s de Guindos: Size of Cuts Is ‘Much Less Important’