ECB Vice President Luis de Guindos has provided a somber outlook for the Eurozone’s economic performance, emphasizing both stubborn inflation pressures and slower economic growth in an interview with Bloomberg TV in Sintra, Portugal.
When discussing the ECB’s potential interest rate policy moves, de Guindos indicated that the decision to hike rates in July seems to be a “fait accompli”, while the situation for September is “open”.
De Guindos voiced his concerns about underlying inflation, which he expects to prove more stubborn than currently anticipated. The Vice President linked these persistent pressures to a potentially strong summer tourist season that could drive services costs higher.
Regarding the economy, “the data that we are receiving about growth are not very good,” he confessed, adding that “some of these downside risks have started to materialize and are becoming much more visible.”
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