ECB's de Guindos: June hike uncertain, supply shock to hit growth

Created at 31 May · 14:22 UTC6 sources↑ Market-relevant6 events

IN SHORT

ECB Vice President Luis de Guindos stated a global supply shock will affect inflation before growth, potentially tempering economic expansion. He warned that a possible June rate hike might not be followed by another move, highlighting the uncertainty for the ECB's June 11 meeting.

Key Numbers

June 11ECB monetary policy meeting date

Who's Involved

Luis de Guindos

European Central Bank Vice President

European Central Bank

Central bank considering monetary policy actions

ECB's de Guindos: June hike uncertain, supply shock to hit growth

Key facts

ECB Vice President Luis de Guindos stated a global supply shock will affect inflation before growth.
De Guindos warned that a possible June rate hike might not be followed by another move.
He described the supply shock as affecting goods beyond energy, worsening terms of trade.
The shock is expected to significantly temper economic growth through consumption and investment.
The ECB will consider new macroeconomic projections and information on the Middle East conflict for its June 11 meeting.

Central banks globally are grappling with persistent inflation and the potential economic impact of geopolitical events. Statements from high-ranking officials like ECB Vice President Luis de Guindos offer insights into the complex decision-making process regarding interest rates, balancing inflation concerns with risks to economic growth. The ongoing Middle East conflict adds a layer of uncertainty, particularly regarding energy prices and supply chains.

↳ Why This Matters

FREQUENTLY ASKED

De Guindos believes the current situation is a global supply shock that will impact inflation first and then economic growth. He noted it affects goods beyond energy and will temper consumption and investment.

De Guindos warned against assuming that a possible rate hike at the June 11 meeting would necessarily be followed by another move, highlighting the uncertainty.

The ECB Governing Council will consider new macroeconomic projections and more information on the Middle East conflict, which is described as the 'great unknown'.

He described the current situation as a dilemma for central banks, balancing the impact of supply shocks on inflation and growth.

Key facts

ECB Vice President Luis de Guindos stated a global supply shock will affect inflation before growth.

De Guindos warned that a possible June rate hike might not be followed by another move.

He described the supply shock as affecting goods beyond energy, worsening terms of trade.

The shock is expected to significantly temper economic growth through consumption and investment.

The ECB will consider new macroeconomic projections and information on the Middle East conflict for its June 11 meeting.

ECB's de Guindos: June hike uncertain, supply shock to hit growth

PiQ Daily

Key facts

ECB's de Guindos: June hike uncertain, supply shock to hit growth

PiQ Daily

Key facts

Get the newsletter.