European Central Bank governing council: Uncertainty still exists, need to "maintain flexibility" in interest rate policy.

Jose Luis Escriv, a member of the European Central Bank's Governing Council, stated that despite inflation being under control, uncertainty still exists, and the ECB must be prepared to take action on interest rates at any time. The Governor of the Bank of Spain said during an event with students at CUNEF University in Madrid on Tuesday: "We need to be very flexible and ready to adjust monetary policy in any direction at any time." According to a video released later that day, he added: "Even if our core scenario is being realized, it does not mean that uncertainty factors have been eliminated." The European Central Bank has signaled that after eight consecutive rate cuts within a year, it is not inclined to further reduce borrowing costs. Consumer price increases are aligning closely with the 2% target, and with the trade agreement reached between Brussels and Washington, visibility into the Eurozone economy has improved. "The anti-inflation process has been successful," Escriv said. "The situation was very complex two or three years ago. The current 2% interest rate level seems reasonable to us." He described price risks as balanced and slightly tilted towards downside risks for economic growth.