European Central Bank (ECB) Vice President Luis de Ginto said recent fluctuations in commodity prices due to the war between Israel and Iran do not change the prospects for the inflation in the eurozone.
“If oil prices increase – but they seem to be somehow restrained – it is something we need to take into account,” Guido said Tuesday (24.6.2025) in Santander, Spain. “But the process by which inflation is reduced has been locked. From what we see today, the process has not escaped the rails – at all. “
Ginto said officials were satisfied with the course of consumer prices, which has gone from the high record to levels just below the ECB target for 2%. Although the goal is still likely to be sustained in the coming months, he said the situation on Iran adds an additional level of complexity to a scene that is already blurred by global commercial tensions.
“We believe that our order for price stability will be fulfilled, but always given that the level of uncertainty is brutal,” the Spanish official said. “It forces us to be very careful.”
After 8 interest rates within a year, the ECB said it is now in a good position to deal with uncertainties in the global economy. Investors expect a pause in the relaxation cycle next month, although they tend to another decline before the end of the year.
The head of the Slovak Central Bank Peter Kazimir said the last few days have shown how fragile the prices are prospects and that “vigilance will be a top priority”.
“I belong to the commanders who believe that we have achieved our goal, that we are in the neutral range,” he told Bratislava today. “Personally, I would not touch interest rates before we have a much clearer picture of the trade war scenarios.”