European Central Bank (ECB) Governing Council member and Spanish central bank chief Pablo Hernandez de Cos said Tuesday, “Russian's invasion of Ukraine will have adverse consequences on economic activity and increase inflationary pressures.”
Additional comments
“Russia’s invasion of Ukraine has increased uncertainty for the economic outlook in Europe and Spain” and that the “scenario will depend on length and severity of the conflict.”
“It is important Spain’s fiscal policy make use of its ability to act in a very granular, focused way to help households, companies most affected by current shocks.”
“Call for fiscal consolidation plan in Spain to gradually reduce high levels of deficit, public debt, to be implemented once recovery is solid.”
Market reaction
EUR/USD is flirting with 1.1000, having hit daily highs at 1.1020 in the last hour. The spot is adding 0.56% on the day.