Outgoing ECB Vice President Luis de Guindos cites weakening growth and geopolitical uncertainty as reasons to delay further tightening.
European Central Bank Vice President Luis de Guindos urged caution on an expected September interest rate hike, citing stagnating growth and upcoming weak economic data. He warned that the impact on growth would become more visible in the coming weeks, advocating for prudence in monetary policy decisions.
The ECB has previously signaled a potential rate increase next month, but recent data and geopolitical tensions have clouded the outlook. Growth concerns now outweigh inflation pressures, with the central bank’s primary mandate of price stability at around 2% still under scrutiny.
The EUR/USD pair fell 0.26% to 1.1755 following the remarks, reflecting market sensitivity to shifts in ECB policy expectations.