May 07, 2024 10:57 GMT
MNI BRIEF: Geopolitical Uncertainty Main Risk To Disinflation
(MNI) ROME
(MNI) Rome
Bank of Spain Governor says June ECB rate cut 'barring shocks'
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Uncertainty over geopolitical tension is the biggest risk for the euro area's disinflation process and bringing inflation back to the 2% target, Bank of Spain Governor Pablo Hernandez de Cos said Tuesday.
Speaking in Madrid, de Cos said decelarion in inflation this year will be slower than in 2023 due to base effects, subsidy withdrawals and persistence of service inflation.
Barring shocks, the European Central Bank should cut interest rates in June, he said, but with the current level of uncertainty policymakers can’t commit to a clear rate path, he said, while noting the outlook for the Spanish economy should be revised upward in June.
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