Free Trial

MNI BRIEF: EZ Inflation Below Projections -- de Guindos

(MNI) Rome

The European Central Bank has been able to reduce the size of the macroeconomic forecasting errors seen in recent shocks, although what errors are now in the system are likely to the downside as “inflation is now coming in somewhat below, rather than above, the projections,” ECB Vice President Luis de Guindos said in a speech on Wednesday.

These errors reveal “a lack of bias in the projections” and the “large uncertainty” in the baseline, he said.

Highly indebted countries should be attentive to funding costs as “weak growth developments or fiscal slippage could reignite concerns around sovereign debt sustainability," de Guindos said, adding that banks should also be prepared for a possible worsening of economic conditions.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
True
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
True

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.