MNI BRIEF: Risk Of Undershooting Very Limited - ECB's Guindos

The fact that inflationwill be around 1.4% in Q1 2026 is not going to be enough to unanchor inflation expectations and modify the wage bargaining process, ECB Vice-President Luis de Guindos said in an interview with Reuters published Monday, adding that in his view the risk of inflation undershooting the 2% target is “very limited”

“We clearly see that wage dynamics are cooling. But, even when you take all these factors into consideration, compensation per employee will be around 3% over time,” he noted.

Trade has a greater magnitude of relevance than interest rates market pricing, “that is not so important compared with the consideration we give to trade issues in the June exercise,"  he added.