ECB’s de Guindos: If incoming data confirms our baseline, we can expect further rate cuts

European Central Bank (ECB) Vice President Luis de Guindos said on Wednesday that “if incoming data confirms our baseline, we can expect further rate cuts.”

Further comments

Risks to economic growth remain tilted to the downside.

The disinflation process is well on track.

We are not pre-committing to a particular rate path.

If incoming data confirms our baseline, we can expect further rate cuts.

But high level of uncertainty calls for prudence in terms of rate-setting.

The balance of risks has shifted from concerns about high inflation to concerns about low growth.

Severe global trade frictions could increase fragmentation of the world economy.

Renewed geopolitical tensions could also affect energy prices.