ECB's Guindos Urges Rate 'Prudence' With War to Hit Growth, FT Reports
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3 Articles
ECB's Guindos Urges Rate 'Prudence' With War to Hit Growth, FT Reports
(Bloomberg) — The European Central Bank should be cautious when considering raising interest rates as the full impact of the Iran war on economic expansion is still to be felt, Vice President Luis de Guindos told the Financial Times.
As markets break a prolonged pause from the ECB, its vice president introduces a new vector of risk: Iran’s war is not yet over for the economy. That’s the warning Luis de Guindos has conveyed in an interview with the Financial Times, picked up this Monday. Interest rate caution, as he put it, is not only desirable: it is mandatory. The central bank’s high office warns that the accumulated increases over the last year and a half should not conti…
ECB's de Guindos urges prudence on rates in parting shot
FRANKFURT, May 11 (Reuters) – The European Central Bank’s outgoing Vice President Luis de Guindos urged colleagues, in an interview published on Monday, to be prudent when deciding on an expected interest rate hike next month as growth was set to weaken. Investors see the ECB raising its key rate at its next meeting on June 10-11 and once or twice again by next spring to stem an energy-led rise in inflation caused by the war in Iran. But de Guin…
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