ECB’s de Cos: Stickier inflation to choke growth outlooks – MNI
|European Central Bank (ECB) policymaker and Bank of Spain's Governor Pablo Hernandez de Cos said in an MNI interview on Wednesday, “the persistence of higher inflation would slow the recovery and would very likely lead to further tightening in the euro area.”
“The longer higher interest rates remain, the more likely that financing cost rises for banks and a deterioration in the quality of credit risk, de Cos added.
Market reaction
At the time of writing, EUR/USD is extending losses toward 1.0800, down 0.33% on the day at 1.0826. Broad-based US Dollar strength amid a cautious market mood is weighing on the main currency pair.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.