Select Language

ECB's de Guindos: Optimistic on growth and services inflation

blockHeadVisual
  1. HOME
  2. Get information
  3. World FX news
  4. ECB's de Guindos: Optimistic on growth and services inflation

World FX news

search
Breaking news

ECB's de Guindos: Optimistic on growth and services inflation

  • X
  • facebook
  • LINE
  • RSS
  • X
  • facebook
  • LINE
  • RSS
New update 2025.11.06 18:07
ECB's de Guindos: Optimistic on growth and services inflation

update 2025.11.06 18:07

European Central Bank (ECB) Vice President Luis de Guindos said in the webinar "Euro area current policy challenges" via online livestream on Thursday that he is comfortable with where interest rates currently are. Guindos further added that fears of inflation undershooting target would be short-lived.

Additional comments

Marginally more optimistic on growth

Much more optimistic on services inflation

Evolution of wages fully aligns with projections

Level of uncertainty is huge

Our intention is to give a gently growing dividend on which we will say more in February

Comfortable with current level of interest rates.

We believe that undershooting will be temporary.

Convergence to 2% is now the baseline.

No discussion on modifying QT.

Market reaction

EUR/USD jumps to near 1.1520 during the European trading session on Thursday at the time of writing.

 

ECB FAQs

The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.

In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets - usually government or corporate bonds - from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used it during the Great Financial Crisis in 2009-11, in 2015 when inflation remained stubbornly low, as well as during the covid pandemic.

Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the European Central Bank (ECB) purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the ECB stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive (or bullish) for the Euro.


Date

Created

 : 2025.11.06

Update

Last updated

 : 2025.11.06

Related articles

Show more

Writer

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?
No loading Yes loading

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Previous article

prev

USD/JPY: Nearing recent highs again - OCBC

Next article

Eurozone Retail Sales rise 1% YoY in September, as expected

prev

Most viewed

EUR/GBP Euro is tests support at 0.8800 area with all eyes on the BoE

The Euro remains on its back foot against the British Pound for the second consecutive day on Thursday.
New
update2025.11.06 20:13

USD/CNH: Likely to trade in a range of 7.1220/7.1350 - UOB Group

US Dollar (USD) is likely to trade in a range of 7.1220/7.1350. In the longer run, there is scope for USD to test 7.1450.
New
update2025.11.06 19:51

NOK gains as Norges Bank holds rate at 4.00% - BBH

Norwegian Krone (NOK) strengthens as the Norges Bank keeps policy steady at 4.00% and signals cautious future rate cuts, BBH FX analysts report.
New
update2025.11.06 19:48

EUR/JPY steady as Eurozone retail sales meet expectations, BoJ minutes hawkish

EUR/JPY trades without a clear trend on Thursday, hovering around 177.00, virtually unchanged on the day. The pair remains stable after the release of mixed data from both the Eurozone and Japan, maintaining a fragile balance between the two currencies.
New
update2025.11.06 19:43

USD/JPY: Likely to trade in a range between 153.30 and 154.40 - UOB Group

US Dollar (USD) could trade in a range between 153.30 and 154.40. In the longer run, USD appears to have entered a 152.40/154.40 range-trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
update2025.11.06 19:43

NZD/USD: Likely part of a range-trading phase between 0.5640 and 0.5680 - UOB Group

The current price movements are likely part of a range-trading phase between 0.5640 and 0.5680. In the longer run, downward pressure has increased; NZD could weaken to 0.5600 next, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
update2025.11.06 19:40

GBP/USD holds above 1.3000 ahead of BOE decision - BBH

GBP/USD is holding above key support at 1.3000, BBH FX analysts report.
New
update2025.11.06 19:37

USD/JPY holds above 153.50 amid wage data - BBH

USD/JPY is consolidating above 153.50, just shy of its recent high near 154.50, BBH FX analysts report.
New
update2025.11.06 19:35

AUD/USD: Expected to consolidate in a range of 0.6485/0.6525 - UOB Group

Australian Dollar (AUD) is expected to consolidate in a range of 0.6485/0.6525. In the longer run, outlook for AUD is negative now, but last month's low near 0.6445 may not come into view so soon, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
update2025.11.06 19:32

USD pulls back after testing 200-DMA - BBH

USD retraced some of its recent gains after testing resistance at the 200-day moving average. No policy-relevant data will be released today but a full slate of Fed speakers could generate some market volatility (Williams, Barr, Hammack, Waller, Paulson, and Musalem), BBH FX analysts report.
New
update2025.11.06 19:29

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

arw
  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Line

Line
Facebook

Facebook
X

Twitter
Cancel