ECB’s de Guindos Positive on Inflation, Cautions on Chinese Goods Imports

21 November 2025

By Marta Vilar – BILBAO, Spain (Econostream) – European Central Bank Vice President Luis de Guindos said on Friday that the evolution of inflation was positive, but warned against risks to growth and inflation stemming from increasing cheap Chinese imports.

Speaking at the Foro Gran Vía in Bilbao, Spain, de Guindos said that the European economy was “performing better than expected three or four months ago,” pointing to the trade agreement between the EU and the US as one factor supporting the improvement.

The evolution of inflation was positive and was now closer to 2%, he said, adding that services inflation, previously the ECB’s main concern, had been slowing.

“We have good news on inflation,” he said, stressing that this had shaped the institution’s decisions in monetary policy.

De Guindos said the trade agreement with China would be a key element going forward, observing that China had gained notable competitiveness and now shared a very similar export profile with Europe.

He added that Chinese domestic prices had fallen by about 5% and the renminbi had weakened by 10%, and warned that increased imports of Chinese industrial goods could have significant implications for growth and inflation.

The ECB had kept interest rates unchanged for three meetings in a row because it considered that “the current level of interest rates is adequate," he said.