20/09/2024 – 9:03
European Central Bank (ECB) Vice President Luis de Guindos said that inflation in the eurozone is close to the 2% target and is expected to be reached by the end of 2025, in an interview with the newspaper Expresspublished on the ECB website. The official did not specify by how much or when the ECB will cut interest rates, but said that the approach adopted is “meeting by meeting” and that they are dependent on data.
Regarding services inflation, Guindos said it is “the weak point of inflation”. “We believe that inflation in the sector will start to fall because we are expecting a moderation in wage agreements and compensation per employee, together with an improvement in productivity”, he explained.
The official also argued that the risks to economic growth in the euro zone are tilted to the downside and that the projection depends on two main elements: the recovery of consumption and the increase in net exports.
“We hope that the economic recovery will be based on consumption and the recovery of household purchasing power,” he said.
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