ECB’s de Guindos: Interest Rates Adequate, Optimistic About Inflation Outlook

22 October 2025

By David Barwick – FRANKFURT (Econostream) – European Central Bank Vice President Luis de Guindos on Wednesday said that ECB interest rates were at the appropriate level.

“The current ECB interest rate level is adequate,” given current inflation, inflation projections and the impact of interest rates on firms and households, de Guindos told the Barcelona Real Assets Meeting.

He was “optimistic” about the inflation outlook, he said, expressing satisfaction with the evolution of services inflation, this being in line with ECB projections.

Still, uncertainty remained high, he said, pointing to geopolitics in particular. This justified maintaining the ECB’s meeting-by-meeting, data-dependent approach to setting monetary policy, he said.

De Guindos observed that financial market valuations were on the high side, reflecting market optimism.