ECB’s de Guindos: Rate cut cycle may not be over yet

Published 18/09/2025, 09:48
ECB’s de Guindos: Rate cut cycle may not be over yet

Investing.com -- European Central Bank Vice President Luis de Guindos indicated Thursday that the ECB might not have completed its series of interest rate cuts that began in June 2024.

Speaking during a webcast hosted by MNI, de Guindos stated that while the risk of inflation falling below the 2% target over the medium term is "not big," further reductions in the key rate cannot be ruled out.

"We do not know if the easing cycle is over," de Guindos said. "If circumstances change, then we will change."

The ECB Vice President also expressed concern about equity market valuations, describing them as "very high" as investors take a "benign" view of political and economic risks. He warned that the possibility of an "accident" in financial markets is high.

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