ECB’s de Guindos: Current Level of Rates Appropriate, Fiscal Policies Could Push Yields Higher

1 October 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Vice President Luis de Guindos said on Wednesday endorsed current ECB interest rates without rejecting the possibility of another rate step.

In a panel discussion at the POLITICO Competitive Europe Summit, de Guindos said that the current level of interest rates was appropriate. Asked about potential additional easing by the ECB in the next 12 months, he called this the “million-dollar question” and said that it would depend on incoming data.

Fiscal policy issues in the US could trigger an increase in bond yields, he said, noting that this would also be driven by the vulnerabilities of financial markets.

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