ECB: Guindos, time is over for negative rates, high uncertainty

(ANSA) - ROME, MARCH 26 - "My personal opinion is that the period of negative interest rates is over, at least in the medium term. We are going through a period of very high uncertainty".

This was stated by the vice president of the ECB, Luis deGuindos, in an interview with the Business Post reported on the ECB website.

After the 50 basis point hike in March, he explained, "there is now this added element of uncertainty stemming from the financial sector problems in the US and Switzerland. And we will adopt an approach where decisions are made meeting by meeting. We do not commit in advance to any action".

   "The question now is how events in the US banking system and Credit Suisse will impact the eurozone economy.

   In the coming weeks and months we have to evaluate whether they will give rise to a further tightening of financing conditions", said the Spanish central banker. The objective, on the price front, is a "timely return to 2% inflation.

We know it can't be tomorrow, but it must be within our forecast horizon, which is a two-year period". (ANSA).