ECB Vice-President Luis de Guindos said at a finance event, “we will continue to raise interest rates to a level that allows us to ensure that inflation converges towards our definition of price stability.”
“It is very important to look at the evolution of underlying inflation and possible second round effects because they will determine the response of monetary policy,” De Guindos said.
While he expect inflation to slow in Q1 or H1 of next year, “we also believe core inflation will be high in coming months.” Also, he noted, “it is very possible that in the fourth quarter and the first quarter of next year we will have negative growth rates.”
