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ECB’s Guindos says economic uncertainty higher now than during COVID

Several ECB policymakers have highlighted their worry about the impact of a brewing trade war



ECB Vice President Luis de Guindos stated that economic uncertainty is higher now than during the COVID-19 pandemic, citing factors like geopolitical tensions and unpredictable inflation. He acknowledged increased real wages and declining inflation, but emphasized the difficulty in predicting future interest rate moves. He also supported increased European defense spending and reiterated the ECB's confidence in reaching its 2% inflation target by late 2025.

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