MNI BRIEF: More ECB Easing If Base View Confirmed - Guindos
MNI (LONDON) - The European Central Bank will continue to reduce the restrictiveness of its monetary policy if incoming data continues to confirm its baseline scenario, ECB vice president Luis de Guindos said in a speech Tuesday.
However, high levels of uncertainty calls for prudence due to risk coming from “severe global trade tensions,” fiscal policy risk that could weigh on borrowing costs and “renewed geopolitical tensions could affect energy prices,” he said at an event in Madrid.
Risks to economic growth remain tilted to the downside and “fiscal policy uncertainty in some large euro area countries as well as global geopolitical risks,” he added, noting that projecting the fiscal stance in Europe is challenging as many countries haven’t submitted budget plans yet.