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MNI BRIEF: ECB Downside Scenario Becoming Baseline- De Guindos

(MNI) LONDON

Europe faces a “very difficult” combination of low economic growth and high inflation, European Central Bank vice president Luis de Guindos said in an interview Friday, with the downside scenario outlined in September’s macroeconomic growth and inflation projections - according to which the euro are economy will shrink by almost 1% next year, with average inflation of 6.9% - coming closer to being the baseline.

Financial markets are still looking for higher rates from the ECB as inflation continues to dominate the outlook, with 125 bps of hikes expected across the next 2 meetings. The rate is now expected to rise to around 3% by Autumn 2023.


MNI London Bureau | +44 20 3983 7894 | luke.heighton@marketnews.com
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MNI London Bureau | +44 20 3983 7894 | luke.heighton@marketnews.com
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