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"Inflation is going to continue to fall, both headline and core
inflation. The markets are discounting, and the markets can also
be wrong, they are based on a series of hypotheses that
sometimes do not come true, that we will start to lower rates in
June '24. It is a bet, it may be right and it may not be right,"
De Guindos told radio station Cadena Cope.
"It will depend on a lot of factors, it will depend on the
data," he said.
The ECB raised its main interest rate on Thursday to a record
high 4% and signalled its latest hike was likely to be the last
as the euro zone's economy slows after a moving to bring
inflation lower over more than a year.
"What I am saying is that with this latest increase that we
carried out yesterday, if the level of interest rates is
maintained over time, we believe that it may be sufficient for
inflation to effectively converge towards our objective of 2
percent," he added.
(Reporting by Jesús Aguado; editing by Balazs Koranyi and Toby
Chopra)
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