ECB’s Guindos Urges Rate ‘Prudence’ With War to Hit Growth, FT Reports

The European Central Bank should be cautious when considering raising interest rates as the full impact of the Iran war on economic expansion is still to be felt, Vice President Luis de Guindos told the Financial Times.

An energy shock is usually reflected in inflation indicators much more rapidly than in growth indicators, Guindos said in an interview published Monday, adding that he expects incoming data on activity “are not going to be good.”