The vice president of the European Central Bank (ECB), Luis de Guindos, has once again made clear the institution’s position in favor of a first drop in interest rates at its meeting on June 6 in which he considers an adjustment appropriate of a quarter of a percentage point.

“We are adopting a prudent approach, which would favor a reduction of 25 basis points,” says the Spanish economist in an interview with the Austrian newspaper ‘Oberösterreichische Nachrichten’, in which he emphasizes that the ECB has not made any decision on the number of cuts of interest rates or their magnitude given the high degree of uncertainty.

In any case, Guindos assures that the entity does not consider the possibility of raising rates in its base scenario, since it expects that inflation will fluctuate in the short term, but will converge sustainably towards 2% in 2025. .

However, the vice president of the ECB recognizes that there are some risks related to the evolution of salaries and their impact on productivity, unit labor costs and lower profit margins, to which are added geopolitical risks and uncertainties such as war in Ukraine and the conflict in the Middle East, as well as possible tensions in Southeast Asia.

“We must continue to be very cautious. Nothing is predetermined in terms of cuts or changes in interest rates,” he warns.