3/3, 4:45 PM (Source: TeleTrader)
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ECB's de Guindos: H1 weaker than forecasted, H2 to be strong

European Central Bank vice-president Luis de Guindos spoke on Wednesday saying that the economic growth in the first half of 2021 will be weaker than it was originally forecasted, while the second half of the year "should be quite strong". He also pointed out that vaccination regime is crucial to the service sector recovery.

De Guindos said that the recent increase in nominal yields comes from a very low level and has been observed "all over the world". The ECB will have to examine what has been driving the yields up, as the eurozone rises aren't widely spread.

The ECB official noted that in 2021 the inflation will grow in the short term to a higher level than forecasted, on average to above 1%, but that would still be below the "definition of price stability". Inflation is also expected to drop in 2022.

Breaking the News / LH