The European Central Bank (ECB) is evaluating the opportunity to reduce interest rates next June, if inflation continues its downward trend as currently expected. This was revealed by Pablo Hernandez de Cos, a leading figure in the governing council of the ECB and governor of the Spanish central bank, who however warns of the presence of factors of uncertainty such as the escalation in energy costs, inflation in the services sector and the persistent geopolitical tensions.
“Should inflation continue to decline in the coming quarters, it will however occur at a more moderate pace due to some upward base effects,” De Cos explained, suggesting that, in such a scenario, it would be advisable to start decreasing the current level of borrowing costs as early as June. Despite this, he clarified that each decision will be made on a case-by-case basis, based on the most up-to-date data, without following a set path for interest rates.