ECB's de Guindos: There are upside risks to inflation outlook

European Central Bank (ECB) Vice President Luis de Guindos said on Thursday that they expect growth to rebound strongly over the course of 2022 in the euro area, as reported by Reuters.

Additional takeaways

"Over the next three years, we anticipate that euro area growth will remain above its long-term average."

"Inflation is likely to remain elevated for longer than previously expected but to decline in the course of this year."

"There are upside risks to that inflation outlook."

"We need more than ever to maintain flexibility and optionality in the conduct of monetary policy."

"We stand ready to adjust all of our instruments, as appropriate, to ensure that inflation stabilises at our 2% target over the medium term."

"Our forward guidance on the conditions under which rates will be raised is clear."

"It’s natural that central banks around the globe won’t necessarily start raising rates at the same time."

"We are guided by our forward guidance conditions and will act if, and when, they have been met."

Market reaction

The EUR/SD pair showed no immediate reaction to these comments and was last seen posting small daily gains at 1.1432.