Economics
ECB Eyes Data as Slowdown Proves ‘Significant,’ Villeroy Says
- Question is whether weakness will last, he tells El Pais
- Central bank has ‘extremely efficient’ instruments if needed
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The slowdown of the European economy is “significant” and the European Central Bank could change its interest-rates guidance if it becomes clear the situation isn’t temporary, Governing Council member Francois Villeroy de Galhau said.
The extent of the weakness at the end of 2018 has taken policy makers by surprise, with Italy entering recession and Germany narrowly avoiding the same fate. The ECB has so far stuck to its guidance that it will keep borrowing costs at record lows at least through the summer, indicating hikes could come after that.