ECB’s de Guindos: ECB vigilant to second round effects of price gains
|The European Central Bank Vice President Luis de Guindos crossed the wires in the last hour, saying that the latest forward-looking indicators show expansion has lost some strength.
Additional quotes:
- Delta variant hasn't had the expected impact.
- Expect to see strong growth in the third quarter.
- Expects inflation to keep rising for the next 2-3 months.
- Supply constraints is a component having a structural impact on inflation.
- Sees factors pushing up inflation fading in 2022.
- The monetary policy response is not the same if the inflation increase is permanent.
- ECB is vigilant to second-round effects of price gains.
Market reaction:
The remarks did little to influence the shared currency, or provide any impetus to the EUR/USD pair, which remains at the mercy of the USD price dynamics. The pair was last seen trading with modest intraday gains, just above the 1.1600 mark.
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