By Benjamin Chiou
Date: Thursday 18 Sep 2025
(Sharecast News) - The vice president of the European Central Bank has said that policymakers are following a "very prudent" approach after last week's decision to hold interest rates, suggesting that a further rate cut in the current easing cycle could still be on the table.
"We do not know if the easing cycle is over," said Luis de Guindos in a livestreamed MNI Connect discussion in London. "If circumstances change, then we will change."
He said the ECB was seeing very positive news on inflation and that the present policy stance - last wee, interest rates were kept at 2% for the second consecutive meeting - was appropriate.
The eurozone economy is showing resilience amid higher trade tariffs on exports to the US, along with other macro uncertainties, he said.
However, de Guindos added that equity valuations are currently very high due to investors' "benign" view on macro risks.
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