ECB’s Escriva advises caution; Villeroy sees rate at 2% by summer

Spanish ECB Governing Council member Jose Luis Escriva stressed caution in an interview published Sunday, highlighting uncertainty in the economic outlook. He stated that it is “very difficult to gauge the impact of events that are unfolding”, emphasizing the need to “wait for doubts around certain issues to be cleared” before making monetary policy adjustments.

Escriva reinforced ECB’s meeting-by-meeting approach, stating there “isn’t a pre-established future path for interest rates.” He also noted that Eurozone demand remains weak, with “notable differences among countries.”

Separately, French ECB Governing Council member Francois Villeroy de Galhau offered a more direct outlook on interest rate, stating that “seen from where we are today, we could be at 2% by the coming summer.”