FRANKFURT (Reuters) - The euro zone remains on track for solid and broad based growth, raising confidence that inflation will continue to rise, European Central Bank Vice President Luis de Guindos said on Tuesday in his first speech since taking office on June 1.
“Downside risks to the outlook stem from the threat of increased protectionism, rising oil prices and its impact on inflation and global growth, as well as very elevated levels of global debt,” de Guindos said in a speech largely repeating the bank’s policy statement from its June 14 meeting.
De Guindos added that a relatively muted market reaction after the June policy meeting indicates that investors consider the ECB’s policy stance appropriate.
The ECB earlier this month decided to end bond purchases by the close of the year but to keep rates unchanged at least until after the summer of 2019.
“Monetary policy will be firmly guided by the outlook for price stability and our stance will evolve in a data-dependent and time-consistent manner,” he added.
Reporting by Balazs Koranyi; Editing by Francesco Canepa