It’s too early to say if the European Central Bank should re -reduce the interest rates Next month either pauses, as global commercial tensions and government spending plans in Europe feed uncertainty, ECB Vice President Luis de Ginto said.
“Today it is very difficult to say what to do in April,” the ECB vice president said at an event in Brussels. “We will see the facts, we will see how the various elements evolve. I hope that we will have more clarity in terms of the end result. And then we will decide accordingly (on the interest rates. “Ginto urged the officials to be” extremely prudent and extremely careful “.
The ECB has reduced interest rates six times since June, but officials are undecided about what they will do next – especially with US President Donald Trump, preparing more commercial contributions for April 2 and Germany to significantly boost investment in defense.
Inflation numbers expected to be announced next week are likely to disclose further slowdown and will be an important element for April’s decision.
The last jerk in the financial prospects came yesterday (26.3.2025), when Trump announced a 25% duty on car imports and put further duties on the European Union and Canada. Investors added bets on the ECB’s relaxation, invoicing an 80% chance of decline in April – from 68% the day before.
Earlier today, Board Member, Pierre Mountains, said the ECB should consider consistently maintaining interest rates next month.
“I’m not saying that I beg for a pause in April, but it’s definitely something to be on the table,” Mountains told CNBC. The duties will create “a very difficult environment to navigate, because whether they push inflation up and down, then the question is whether we have to look inside or not. And this will be a difficult act of balancing. “
The Belgian official caught a more hawk tone than Kazaks’ Latvian counterpart, who stated earlier in the day that if the ECB’s main scenario applies, “we can probably hope for a gradual reduction in interest rates in the future.”