site.btaBank of Spain Governor for BTA: It Is Too Early to Talk about ECB’s Lowering Interest Rates

It is too early to talk about a cut in interest rates by the European Central Bank, Pablo Hernandez de Cos, the Governor of the Spanish Central Bank - Banco de Espana, told BTA on Wednesday. He is among the delegates at the annual meeting of the World Bank and the International Monetary Fund taking place in Marrakech.

In September, the ECB raised its key interest rates to a record high, sending the interest rate on the deposit facility to 4%.

After the September meeting, the institution's president, Christine Lagarde, said the bank's key interest rates had reached levels that, if sustained for a long enough period, would contribute substantially to returning inflation to the target level of 2%.

Asked about Bulgaria's path to the euro area, the Governor of the Bank of Spain said that the ECB's convergence report, expected in spring 2024, will make it possible to assess whether the country meets the requirements for membership. 

“I support the accession of any country that fulfils the criteria,” de Cos told BTA.