Guindos Says ECB Not Following Pre-Determined Interest-Rate Path

(Bloomberg) -- The European Central Bank isn’t following a pre-set path toward lower interest rates as uncertainty remains high, Vice President Luis de Guindos told CNBC in an interview.

Most Read from Bloomberg

Geopolitical risks, wars in the Middle East and Ukraine and elections in France complicate an assessment of the economy and price trends, Guindos said, adding that the next months “won’t be easy.”

“For the rest and given the uncertainty we’re going through, it’s quite clear we don’t have a predetermined path,” Guindos said. “We have confidence inflation will converge to our definition of price stability,” but “we have to be very prudent.”

Asked how many times the ECB will cut rates this year, he said “we don’t know — we’ve been quite clear in that respect.”

He also said that the latest market moves in France weren’t “disorderly” and reflect potential shifts in fiscal policy. “The situation has been under control.”

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.