Latest news with #DeGuindos
Yahoo
10-02-2025
- Business
- Yahoo
Trump's tariffs spur economic uncertainty, impact on inflation less clear, ECB's de Guindos says
MADRID (Reuters) - Trade tariffs announced by U.S. President Donald Trump could trigger economic uncertainty but the impact on inflation is less clear, European Central Bank Vice President Luis de Guindos said on Monday. Trump's plan for 25% tariffs on all steel and aluminium imports into the United States, on top of existing metals duties, represents another major trade escalation. "Today we woke up to the issue of steel and aluminium," de Guindos told Spanish broadcaster TVE. "Apart from the geopolitical risks, I think that the policy of the new American administration obviously creates a situation of huge uncertainty." See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. The ECB's number two official said that the implementation of tariffs would create a "supply shock" therefore "fundamentally" affecting global economic growth. "The impact on inflation is much less clear (...) because if you have a fall in economic activity then immediately that tempers the evolution of the inflationary tensions," de Guindos said. De Guindos said it was important to avoid a trade war, adding that Europeans needed to be careful in their response to potential U.S. trade tariffs. "Sometimes the initial announcements don't end up materialising (..) therefore, you have to take a prudent and intelligent approach," he said. De Guindos said that inflation in the euro zone was converging towards the ECB's medium goal of 2% and that decisions on the bank's future monetary policy would be taken meeting by meeting.
Reuters
10-02-2025
- Business
- Reuters
Trump's tariffs spur economic uncertainty, impact on inflation less clear, ECB's de Guindos says
MADRID, Feb 10 (Reuters) - Trade tariffs announced by U.S. President Donald Trump could trigger economic uncertainty but the impact on inflation is less clear, European Central Bank Vice President Luis de Guindos said on Monday. Trump's plan for 25% tariffs on all steel and aluminium imports into the United States, on top of existing metals duties, represents another major trade escalation. "Today we woke up to the issue of steel and aluminium," de Guindos told Spanish broadcaster TVE. "Apart from the geopolitical risks, I think that the policy of the new American administration obviously creates a situation of huge uncertainty." The ECB's number two official said that the implementation of tariffs would create a "supply shock" therefore "fundamentally" affecting global economic growth. "The impact on inflation is much less clear (...) because if you have a fall in economic activity then immediately that tempers the evolution of the inflationary tensions," de Guindos said. De Guindos said it was important to avoid a trade war, adding that Europeans needed to be careful in their response to potential U.S. trade tariffs. "Sometimes the initial announcements don't end up materialising (..) therefore, you have to take a prudent and intelligent approach," he said. De Guindos said that inflation in the euro zone was converging towards the ECB's medium goal of 2% and that decisions on the bank's future monetary policy would be taken meeting by meeting.
Reuters
05-02-2025
- Business
- Reuters
ECB's de Guindos says how low rates go depends on inflation development
BERLIN, Feb 5 (Reuters) - Inflation is approaching the European Central Bank's 2% target, and how much lower the rates will go depends on data confirming inflation is converging towards that target in a sustainable manner, the bank's vice president told Slovak newspaper Hospodarske Noviny. "We are confident that this will happen this year, but there are still a number of uncertainties, particularly surrounding the geopolitical situation, that we need to take into account," Luis de Guindos said in an interview published on Wednesday. "So, even if our current trajectory under the current circumstances is clear, nobody knows the level at which interest rates will end up," he added. De Guindos also said that estimating the threat of U.S. President Donald Trump's economic policies to the ECB's inflation target was more difficult than how they would affect the global economy's growth prospects. "Estimating the impact on inflation is more difficult owing to the dampening effect of tariffs on demand and growth, as well as the fact that selective tariffs can lead to trade being redirected and diverted," added de Guindos. here.
