Central Banks
ECB’s Guindos Still Sees Substantial Transmission to Economy
- Most inflation measures started to ease, vice president says
- Comments reinforce idea that rates will stay on hold for now
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A large portion of the European Central Bank’s unprecedented campaign of interest-rate hikes has yet to be felt in the economy and will only filter through this year and beyond, according to Vice President Luis de Guindos.
While transmission of monetary-policy tightening to financing conditions is “well underway,” its passage to the real economy is proceeding at a slower pace, with a “substantial share” still in the pipeline, Guindos told an event in Limassol, Cyprus.