By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member José Luis Escrivá said on Friday that the ECB needed to remain “agile” and prepared to adjust its policy should developments alter the inflation outlook in either direction.
In an interview with Spanish radio Cadena SER, Escrivá, who heads the Banco de España, said inflation was effectively at 2%, with expectations “anchored at that level,” adding that forecasts for the next two years pointed to this continuing.
Interest rates could remain at 2% for a prolonged period, he said, though this was not necessarily guaranteed.
“[W]e are operating in a very complex international environment marked by a high degree of uncertainty, and at the same time we need to remain agile in case developments emerge that alter the inflation outlook in either direction,” he said.
As a result, holding rates steady and expecting this stance to persist for some time was not “inconsistent,” he said, with the possibility of reassessing the situation and adjusting the approach when necessary.
Escrivá said he did not expect economic growth to be significantly stronger than in recent years but noted that the central bank had revised its 2026 projection late last year.
Asked about Kevin Warsh as the new chair of the US Federal Reserve, Escrivá said Warsh had a “very long track record” in central banking and a “great deal of experience” beyond it.
He described Warsh’s credentials as “very high” and downplayed the potential impact of his appointment on the ECB’s decisions, stressing that the Fed was often incorrectly identified solely with its chair, whereas decisions were taken collectively.
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