MNI BRIEF: Risk Of Undershooting Not Big -ECB's De Guindos

The risk of the European Central Bank undershooting its 2% inflation target is “not big, not relevant for us,” Vice President Luis de Guindos told in an MNI Connect Event on Thursday, pointing to the last projections exercise that saw 2026 and 2027 inflation at 1.7% and 1.9%, respectively.

However, he noted that the impacts of U.S. tariffs on the economy, activity and even inflation have yet to be seen, and that risks to inflation are balanced in both directions.

Despite that De Guindos said that the ECB does not know if the current easing cycle is over as uncertainty remains high due to geopolitical tensions. (See MNI SOURCES: Doubts Over EU Carbon Pricing Key For ECB Rates)