Luis de Guindos warned that US tariffs will negatively impact Eurozone growth and pricing for years to come. He addressed inflation concerns, stating strong wage growth and a tight labor market would reinforce economic stability.
The ECB has paused any further rate cuts, anticipating only one more cut by the year’s end. With inflation projected to dip to 1.4% by Q1 2026, the bank expects stable wage growth to help maintain price levels.
Luis also dismissed the suggestion that the euro could challenge the dollar’s status as the main reserve currency, indicating that the euro’s recent rise is not a threat to exporters and reflecting a stable exchange rate.
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