Overview
- Luis de Guindos, in his final public comments reported by the Financial Times, said upcoming eurozone growth data is likely to disappoint and urged caution on any new rate increases.
- The European Central Bank kept its key rate at 2% on April 30, and with inflation at 2.6% the cost of borrowing still sits below price growth, a setup some officials say could argue for tighter policy even as the economy slows.
- His departure and the handover to Croatia’s Boris Vujčić introduce uncertainty over how the next phase of policy will be set.
- Markets now see a lower chance of near‑term tightening, which matters for crypto because steady or lower rates tend to draw money into riskier assets by making cash and government bonds less attractive.
- The next eurozone growth readings and the June ECB meeting are the key signposts that will show whether the current pause holds or talk of new hikes returns.