MNI BRIEF:Fiscal Policy Could Prompt Market Correction-Guindos

Loose fiscal policy in both Europe and the U.S. could be the factor that triggers a correction in financial markets which could be overvalued, European Central Bank Vice President Luis de Guindos said in an event organised by Politico on Wednesday.

Markets are taking a lot of risks and an important correction could arrive that could also be amplified by looser regulation of non-banks, de Guindos said.

Asked how many interest rate cuts the ECB was likely to make in the next 12 months, de Guindos said that was “the million dollar question” and that it would ultimately depend on data. (See MNI SOURCES: Doubts Over EU Carbon Pricing Key For ECB Rates)