MADRID, Dec 19 (Reuters) – ECB policymaker Jose Luis Escriva said on Friday he saw no reason for a change in interest rates and that he expected monetary policy to remain steady in the foreseeable future.
The European Central Bank kept its policy rates steady on Thursday and revised upwards some of its growth and inflation projections, a move that probably closes the door to further cuts in borrowing costs in the near term.
Asked about a potential next move on rates, Escriva said in an interview with Spanish broadcaster TVE: “We don’t know but we are open to any movement, in any direction if necessary, but for the moment we are very comfortable with the current level of 2%.”
Recent growth figures for the euro zone have outpaced the ECB’s expectations, buoyed by exporters navigating U.S. tariffs more effectively than anticipated and by domestic spending that has offset a malaise in manufacturing.
Inflation has meanwhile hovered around the central bank’s 2% target, boosted by price hikes in the services sector, and is expected to stay there for the foreseeable future.
The more upbeat outlook has already led investors to draw a line under an easing cycle that saw the ECB halve its policy rate from 4% to 2% in the year to last June.
(Reporting by Jesús Aguado and Jesús Calero; editing by Victoria Waldersee and Gareth Jones)
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