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ECB will keep cutting rates and focus shifting to growth, VP says
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FRANKFURT (Reuters) – The European Central Bank will keep cutting interest rates as inflation falls and its focus is slowly shifting to growth, which is proving fragile, ECB Vice President Luis de Guindos told a Finnish newspaper.
FRANKFURT (Reuters) – The European Central Bank will keep cutting interest rates as inflation falls and its focus is slowly shifting to growth, which is proving fragile, ECB Vice President Luis de Guindos told a Finnish newspaper.
“Concerns about high inflation have shifted to economic growth,” Helsingin Sanomat quoted de Guindos as saying. “The trajectory of our monetary policy is clear – if our projections are confirmed, we will continue making our monetary policy stance less restrictive.”
(Reporting by Balazs Koranyi; Editing by Andrew Heavens)
Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage of the amount borrowed or saved. They are influenced by central bank policies and economic conditions.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI) or Producer Price Index (PPI).
Economic growth is an increase in the production of goods and services in an economy over a period of time, usually measured by the growth rate of real Gross Domestic Product (GDP).
The European Central Bank (ECB) is the central bank for the eurozone, responsible for monetary policy in the Euro area, aiming to maintain price stability and oversee the financial system.
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