Guindos Says ECB Needs to Be Prudent, Keep a Cool Head on Rates

Uncertainty over the Iran war means the European Central Bank should take a measured approach to setting interest rates, according to Vice President Luis de Guindos.

“We need to be prudent, keep a cool head, and analyze the data in a highly uncertain environment,” he said in Madrid on Tuesday, adding that monetary policy isn’t all-powerful and can’t prevent the initial impact on prices. “We can, however, prevent second-round effects and the de-anchoring of inflation expectations.”