Interest rates in the euro zone: 'March projections are crucial in determining the future', says ECB

The new projections for inflation and economic growth in the European central bankwhich will be released in March, will be crucial for the institution to determine when the interest rate reduction will begin, said the head of the ECB and president of the Bank of Spain, Pablo Hernández de Cos.

“The projections will be key to assessing, firstly, whether we can be sufficiently confident that our medium-term target of 2% will be achieved, taking into account related risks, and secondly, the (interest) rate trajectory that is compatible with the fulfillment of our symmetrical goal”, said Hernández de Cos to the Cypriot newspaper Politis, in an interview published on Sunday, 11.

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The leader also stated that the disinflation process in the euro zone is “well advanced” and should continue in the coming quarters.

In January, the bloc's annual consumer inflation rate was 2.8%, according to preliminary data. The ECB's inflation target is 2%.