MNI BRIEF: ECB Dec Projections Similar To Brussels– De Guindos

The European Central Bank's December economic projections won’t be “very different” in terms of growth and inflation from the ones the European Commission Autumn Forecasts published Friday that sees eurozone inflation at 2.6% in 2024, ECB’s vice president Luis de Guindos said Friday at an event in S’Agaró in Spain.

There is a risk that the markets could “underestimate the inflation persistence” after US CPI data went below expectations, he said. “Sometimes (markets) mistake desires for reality”, de Guindos said, noting financial stability risks.

Another source of risk could be a conflict between fiscal and monetary policy, and the example of financial turmoil in the United Kingdom after the release of the government’s spending plans should be an important lesson.