MADRID, 15 Sep. (EUROPA PRESS) –
The vice president of the European Central Bank (ECB), Luis de Guindos, advanced this Friday in an interview on ‘Cope’ that it cannot be ruled out that interest rates will begin to be cut in June 2024.
“It is a bet [of the markets], it may be correct, it may not be correct, it will depend on many factors,” said De Guindos, who has emphasized the ECB’s message that a level has been reached. of rates that if maintained for the necessary time, will be a “very important contribution” during the coming quarters to return inflation to around 2%.
In fact, the former Spanish Minister of Economy has subsequently admitted that, with the current level, “there is a high possibility” that “in a not very long period of time” inflation will be controlled. However, De Guindos has been cautious, since it is important to monitor the evolution of projections and how rate increases are transmitted to financial markets.
For his part, De Guindos has rejected the criticism of those who are opposed to rate increases for making mortgages more expensive, since inflation is the “greater evil” for “low-income” citizens by reducing their purchasing power.
“If we did nothing, we would fundamentally find that inflation would skyrocket, there would immediately be absolutely crazy inflation expectations,” he assured.
According to De Guindos, the first half of the Spanish economy has been “relatively good”, although the second quarter has been “weaker” in line with the rest of the European economy, as is the case in Germany.
Even so, the vice president of the ECB has noted that the Spanish economy, for the moment, is “very competitive”, given its export component, and has a healthy banking system.
Regarding the possible forgiveness of debt to the autonomous communities, De Guindos has stated that, as it occurs between public administrations, it is “neutral” from the point of view of the debt as a whole, although it does produce “an extraordinary benefit to those affected.” has forgiven the debt and an extraordinary loss to those who have forgiven the debt.
However, he recalled that carrying out a general remission will not benefit everyone equally, since the situation in the different regions “is not identical.”
In any case, De Guindos has pointed out that it is “important to have a Government with the capacity to act” to prepare Budgets and decide on “certain investment projects”, especially in the face of “challenges” such as the European and global slowdown or the rebound in oil prices.
On the other hand, the former minister has also referred to the issue of the appointment at the head of the Single Supervisory Mechanism (SSM), regarding which he has stated that “he does not know what the European Parliament will do” after the ECB’s nomination of the German candidate, Claudia Buch, to direct it.
Previously, Parliament assessed the deputy governor of the Bank of Spain, Margarita Delgado, as preferable for having more previous supervisory experience. The European Parliament must ratify the decision of the issuing institute.
