The European Central Bank (ECB) Vice President Luis de Guindos said on Monday, “the most worrying factor for economic growth in eurozone right now is inflation.”
Further quotes
“Factors behind inflation are of transitory nature, therefore expects inflation to start falling next year.”
“New coronavirus variants and spread of COVID-19 cases will increase uncertainty.”
“Potential withdrawal of support measures for companies in the eurozone has to be taken very carefully.”
“It is important for monetary policy to keep all options open.”
In the last hour, the central bank Governing Council member and Bank of France Head Francois Villeroy de Galhau noted: “Economic effects of successive covid waves have been less and less damaging.”
“Omicron shouldn’t presumably change the economic outlook that much,” he added.
Market reaction
Despite the not-so-encouraging comments from the ECB policymaker, EUR/USD is attempting a bounce from 1.1260 daily lows. The spot was last seen trading at 1.1273, down 0.39% on the day.