Speaking at an event organized by the Diario Madrid Foundation and Cercle de Economia in Barcelona, European Central Bank Deputy Governor Luis de Guindos stated that he does not expect the eurozone to experience a recession in the coming years. He also added that inflation will undoubtedly decline but he still expresses concerns about Core inflation and services
- The latest ECB decision was very unanimous.
- I can’t believe anyone calls a final price.
- Markets can be wrong about the final interest rate.
- De Guindos insisted that core inflation would fall.
- Commenting on future increases by the ECB in interest rates, de Guindos confirmed that there will be more but the number of them will depend on the economic data.
- Policymakers will have to wait a while and assess the impact of interest increases on financial conditions.
In previous statements, the Deputy Governor of the European Central Bank explained that the current tightening approach is likely to continue for a few months until the evolution of inflation becomes clearer, as well as the consequences of these measures, stating that core inflation, which is the main focus of the European Central Bank in recent months, will decrease, but it appears. How stable it is, as well as the significance of it coming down from fairly high levels, with de Guindos forecasting headline inflation to fall below 6% by mid-2023.
ECB Deputy Governor confirms that wages will accelerate