Luis de Guindos Urges ECB Prudence on Interest Rates
Outgoing ECB Vice President Luis de Guindos urged caution on June rate hikes as growth slows. He noted the impact of the Iran conflict will soon be more visible.
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Luis de Guindos warned the European Central Bank (ECB) to remain prudent regarding interest rate hikes as economic growth weakens. Markets expect a rate increase during the June 10-11 meeting to combat energy-driven inflation caused by the war. De Guindos urged officials to seek additional clarity regarding the conflict before committing to aggressive moves.
