ECB Vice President Luis de Guindos expected inflation to hover at current low levels over the six months. He also “started to see some signs of stabilization on a global level”. Risks are also less tilted to the downside. However, he still sees “a lot of uncertainties” surrounding China’s coronavirus outbreak.
He also urged that “completing the banking union is pivotal” for the performance of the Eurozone. Fiscal must play a role as side effects of monetary policy are becoming more tangible.
