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6/16/2022, 8:21 AM (Source: TeleTrader)
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ECB's De Guindos: Rate hike in Sept. could be larger

European Central Bank's Vice President, Luis de Guindos, said on Thursday that the bank's projections indicate that Eurozone inflation will gradually start going down later in 2022, however remaining above the 2% target.

Commenting on the ECB's effort to combat soaring consumer prices, De Guindos reiterated the central bank would end net purchases under the asset purchase program on July 1 while raising key interest rates by 0.25% at the meeting set for July 21. "For September, we can consider a bigger increase if the inflation outlook persists or deteriorates," he added.

The ECB's vice president also commented on the euro area's economy, asserting the bloc won't face a recession but low economic growth. "In more extreme situations - such as severely disrupted energy supplies, as assumed in our downside scenario - growth would turn negative in 2023," De Guindos concluded.

Baha Breaking News (BBN) / ND