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11/29/2023, 8:24 AM (Source: TeleTrader)
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ECB's de Guindos: Goal to take inflation back to target

European Central Bank (ECB) Vice-President Luis de Guindos reiterated in an interview with De Standaard and La Libre Belgique published on Wednesday that the institution's focus remains on reducing inflation to its target of 2%.

"If the ECB raises interest rates, it is for borrowers and savers. Lending rates have risen and the remuneration of deposits is expected to follow suit. The remuneration on savings accounts should reflect our interest rates," de Guindos commented further. "But we are also taking measures to reduce excess liquidity, so that higher interest rates on savings accounts will become a reality – sooner or later."

Commenting on the effect of the tightened monetary policy on the housing market, de Guindos said that "[t]he sharp rise in interest rates is starting to dampen real estate prices. ... On average, house prices are stabilizing. The decline in commercial property prices is much more pronounced."

Baha Breaking News (BBN) / JR