Interview with Luis de Guindos, Vice-President of the ECB, conducted by Jakob Zirm on 28 April 2025

3 May 2025

Die Presse: Since June 2024 the ECB has already cut interest rates seven times. How long will this period of interest rate cuts last?

Luis de Guindos: This will depend on how inflation develops. But we can be optimistic because our latest forecasts show that, from the end of this year, inflation will be very close to our target of 2%. Moreover, inflation continues to fall thanks to three additional factors. First, the euro has appreciated. Second, energy and commodity prices are declining. And third, the current economic uncertainty about tariffs could lead to greater wage moderation than that already suggested by the latest survey results. All these elements contribute to bringing inflation further down. And this is the decisive factor in whether we continue to lower interest rates.

Where would you place the neutral interest rate, i.e. the rate which neither stimulates nor…