Central Banks

ECB’s Guindos Warns Market Against ‘Wishful Thinking’ on Economy

  • Vice president calls ECB policy communication ‘very clear’
  • Premature to discuss rate cuts, he tells Bloomberg TV
WATCH: De Guindos warns that markets are “a little bit sanguine and optimistic” about the euro-zone economy.Source: Bloomberg
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European Central Bank Vice President Luis de Guindos said investors may not be fully pricing the risk of a stronger hit to the euro-zone economy following a year of interest-rate hikes and rising political tensions.

Further trouble in the Middle East is just one example of how geopolitics could yet upend hopes for a so-called soft landing where inflation is tamed without a major recession, Guindos said Wednesday.