Central Banks
ECB’s Guindos Says Wages, Margins Pose Upside Inflation Risk
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European Central Bank Vice President Luis de Guindos said upside dangers to inflation stem from rising wages and widening profit margins, while downside risks include weaker lending if the banking sector comes under renewed pressure.
“Our future decisions will ensure that the policy rates will be brought to levels sufficiently restrictive to achieve a timely return of inflation to our 2% medium-term target,” Guindos told lawmakers Thursday in Brussels.