MNI BRIEF: Inflation Trend More Relevant Than ETS2 Hit-Guindos

Inflation trends would be much more relevant for the European Central Bank in future interest rate decisions than any potential impact of a delay or watering down of the EU’s new ETS2 emissions-trading regime, Vice President Luis de Guindos told an MNI Connect event on Thursday.

“We will have to wait. Now [ETS2] is part of our assumptions,” de Guindos said about the possibility the scheme which would significantly add to fuel prices could be modified. ETS2 would imply only a one-off impact on inflation, whose trend looks good, he said. (See MNI SOURCES: Doubts Over EU Carbon Pricing Key For ECB Rates)

“Inflation has to be analysed in an holistic approach,” he said.