The path of monetary policy easing in the Eurozone may require further adjustments if current macroeconomic and inflation forecasts are confirmed, said ECB policy chief José Luis Escrivá.
Last week, the ECB cut interest rates and hinted at a pause after inflation in the Eurozone returned to the 2% target level.
Escrivá, who also heads the Bank of Spain, said in an interview with El Pais on Sunday that he is satisfied with the gradual approach of reducing the rate by 25 basis points.
“Our central scenario — GDP growth of around 1% and inflation at 2% — may require adjustment if confirmed,” he said.
The ECB has cut rates by 2 percentage points since June last year to support the Eurozone economy, which has been affected by the unstable economic and trade policies of the US.
Escrivá added that confidence in the dollar and US assets has declined since Donald Trump took office, and that since April, the dollar has ceased to be a “safe haven,” with its dominance as the world’s reserve currency likely having peaked.
He also reported that the Bank of Spain will revise its economic growth forecast for 2025 downward from the current 2.7% on Tuesday.
