ECB's De Guindos: 3.5% inflation in 2022 realistic

# 10 February 2022 19:16 (UTC +04:00)

Vice-President of the European Central Bank Luis de Guindos stated on Thursday that "flexibility and optionality in monetary policy" are key to reaching price stability, noting the European Commission's 3.5% estimate for 2022 inflation "looks realistic", APA reports citing Teletrader.

De Guindos shared that the greater resilience of the financial sector was crucial in "absorbing the shock of the pandemic" and working towards recovery. However, he highlighted that the fight is not over as the EU's banking and capital markets need further strengthening, as new challenges are expected to arise.

De Guindos further added that inflation could become much more complicated if the second round effects emerge and monetary policy would need to give a response. He stated that the decline in inflation will start this spring.