ECB’s de Guindos: Inflation Data Were Positive, Growth Risks to the Downside

4 October 2024

By Marta Vilar – MADRID (Econostream) – European Central Bank Vice President Luis de Guindos said on Friday that inflation had surprised positively lately while growth was still subject to downside risks.

Speaking at an event to mark the 30th anniversary of Radio Intereconomía in Madrid, de Guindos declined to say whether the ECB was going to cut rates in its October meeting. ‘It’s better to be prudent’, he stated.

‘Inflation data were good, we had a positive surprise, economic growth data suggests there are downside risks’, he added.

Beyond the noise of new data points, the direction of the ECB’s monetary policy was clear as long as inflation moved as projected by the central bank’s staff, according to de Guindos.

Inflation had decreased considerably, but the ECB could not declare absolute victory since services inflation remained high, he said.

‘We have a problem with economic growth, as exposed in the Draghi and Letta report’, he said. ‘Growth in Europe is being very modest, slightly above 1%, and we have structural problems, a lack of productivity and investment, and demographic issues.'