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MNI BRIEF: ECB Policy May Cause Short-term Pain - De Guindos

(MNI) LONDON
(MNI) London

European households and businesses may be set for a “painful” period as policymakers attempt to keep inflation under control at the same time as the euro area economy slows, European Central Bank vice president Luis De Guindos said in an interview Friday in which he indicated that TPI is “ready to use” if needed.

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European households and businesses may be set for a “painful” period as policymakers attempt to keep inflation under control at the same time as the euro area economy slows, European Central Bank vice president Luis De Guindos said in an interview Friday in which he indicated that TPI is “ready to use” if needed.

“We will have to take decisions to reduce inflation that might be painful in the short and medium term, but that will be positive for our citizens in the long run,” De Guindos said, adding that reduced demand pressures would not by themselves bring price rises back to the ECB's 2% target. He offered no fresh insight into what future action the ECB could take, pointing to the meeting-by-meeting approach.

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European households and businesses may be set for a “painful” period as policymakers attempt to keep inflation under control at the same time as the euro area economy slows, European Central Bank vice president Luis De Guindos said in an interview Friday in which he indicated that TPI is “ready to use” if needed.

“We will have to take decisions to reduce inflation that might be painful in the short and medium term, but that will be positive for our citizens in the long run,” De Guindos said, adding that reduced demand pressures would not by themselves bring price rises back to the ECB's 2% target. He offered no fresh insight into what future action the ECB could take, pointing to the meeting-by-meeting approach.

Keep reading...Show less