Central Banks
ECB’s Guindos Says Inflation Outlook Faces ‘Substantial Risks’
- Vice president speaks in London before expected June rate cut
- Officials divided on how quickly monetary policy can be eased
Luis de Guindos
Photographer: Peter Juelich/BloombergThis article is for subscribers only.
The European Central Bank faces significant dangers to achieving its inflation goal, according to Vice President Luis de Guindos, who cited factors that could pull prices too far in either direction.
“While we expect inflation to return to our 2% target next year, the outlook is surrounded by substantial risks,” the Spanish official said Monday. “The geopolitical situation, especially in the Middle East, poses a particular upside risk to inflation.”