The European Central Bank (ECB) Vice President Luis De Guindos crossed the wires last minutes, via Reuters, with the key comments found below.
We have not included in the baseline the possibility of a no-deal Brexit, or even an escalation of trade tensions, if these downward risks materialize, the growth outlook will deteriorate further
Inflation expectations are not de-anchoring, but there is a potential risk that they could do so
Asked if mitigation lays the ground for further rate cuts, says we haven’t discussed it, but my impression is -0.50% is correct level at present, and as to any further cut, we will have a good, in-depth discussion in the governing council
Although we can reduce interest rates further, the side effects of monetary policy are becoming more and more evident and more and more tangible
ECB still has headroom
On whether ECB will make changes at the next meeting, says we will have to see what happens with the outlook. And we will have to see what happens with the downside risks.
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