ECB’s de Guindos: Central bank needs to avoid “M-shaped evolution of inflation”

European Central Bank (ECB) Vice-President Luis de Guindos provides his outlook on growth and inflation during his latest appearance on Monday.

Key quotes

Inflation is starting to decelerate but still sees inflation hovering around 7% by mid-2023.

The ECB needs to avoid "M-shaped evolution of inflation" whereby there is a re-acceleration after slowing down.

The economic deceleration is not as deep as expected.

Market reaction

Amidst slightly hawkish comments from the ECB policymakers, EUR/USD is advancing 0.12% on the day to 1.0550, at the press time.