10/2, 6:25 AM (Source: TeleTrader)
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ECB's de Guindos says rate cut talks 'premature'

European Central Bank (ECB) Vice-President Luis de Guindos disclosed in an interview with The Financial Times on Monday that the policymakers are not considering rate cuts, underlining that such a step would be "premature" given the recent surge in crude oil prices.

"We are on our way towards 2%...That's clear. But we must monitor that very closely, as the last mile will not be easy... the elements that might torpedo the disinflation process are powerful," de Guindos explained.

In September, the European Central Bank voted to raise its key interest rates by a quarter of a percentage point, marking its tenth consecutive hike since the tightening cycle began last year. Meanwhile, the latest print on the Eurozone's inflation showed that the rate declined in comparison to the August reading.

Baha Breaking News (BBN) / AB