ECB’s Escrivá: It Would Be Logical for Us to Cut Rates Further in Upcoming Meetings
13 December 2024

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member José Luis Escrivá said on Friday that the ECB would probably lower rates further in upcoming meetings.
In an interview with Spanish TV Antena 3, Escrivá, who heads the Banco de España, said that ‘if we keep converging to the ECB’s 2% inflation target in the medium term, it would be logical for us to cut rates again in upcoming meetings.’
Asked why a 50bp cut was discarded at the Governing Council’s meeting despite the weakness in France and Germany, Escrivá said that the ECB should only focus on the euro area as a whole.
‘We make decisions for the whole of the euro area’, he said. ‘If we had to make decisions for each one of the economies, we would go crazy.’
The ECB is practising a gradual strategy that would lead interest rates back to normalised levels, he said.
‘In yesterday’s discussion the idea of maintaining 25bp movements prevailed, this way we will be able to assess if disinflation keeps materialising’, he said.
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