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ECB’s de Guindos: Inflation Risks Balanced, Interest Rates Appropriate

6 October 2025

ECB’s de Guindos: Inflation Risks Balanced, Interest Rates Appropriate
Luis de Guindos, vice president of the European Central Bank, at the ECB Forum on Central Banking in Sintra, Portugal on July 2, 2024. Photo by the ECB under CC BY-NC-ND 2.0.

By David Barwick – FRANKFURT (Econostream) – European Central Bank Vice President Luis de Guindos on Monday called inflation risks in the euro area balanced and interest rates appropriate, but urged caution.

In remarks at a financial conference organized by Spanish daily Expansión in Madrid, de Guindos said that “risks to inflation are balanced” and that with developments bearing out the ECB’s macroeconomic forecasts, the achievement of price stability could prove durable.

Current interest rates were “appropriate on the basis of recent inflation, of our own inflation projections for the coming years and also of the transmission of monetary policy,” he said.

Still, de Guindos said that “extreme caution” was warranted and that there was no fixed rate path under high uncertainty.

“If the circumstances change, then logically our monetary policy approach – the current level that we consider appropriate – could be modified whenever circumstances change,” he said.