MNI BRIEF: Price Stability Could Be Guaranteed - de Guindos

The European Central Bank’s 2% price stability target could already be guaranteed with interest rates at current levels given incoming data on services inflation, wages evolution and the overall economic outlook, Luis de Guindos said at an event in Madrid on Monday.

“Inflation risks are balanced and our projections are being met”, the ECB's Vice President said, while adding that uncertainty is still high and things could change quickly. Regarding trade policy, he said that it will also be important to monitor trade deals between third countries that could end up affecting Europe, citing U.S. and China as examples.

Fiscal policy is another source of risk both in the U.S. and Europe and while the old continent is in a better macro position, political instability in some countries could yet make it difficult to achieve the fiscal adjustment needed to accommodate an increase in defence spending over coming years.