ECB De Guindos May 4 2023

ECB de Guindos is on the wires saying:

  • Inflation will undoubtably fall.
  • I am worried about core inflation and services
  • Economic slowdown will curb corporate profits.
  • Underlying inflation will fall too.
  • We have to assess impact of interest rate hikes on finance conditions.
  • Next step is to assess impact on aggregate demand
  • We have to avoid a preset course.
  • There can be more rate hikes, how many will depend on data.
  • Rate decision had a very high consensus
  • Expect positive GDP growth in Q2 and Q3
  • Does not expect a recession

Somewhat non-committal on rates, but still concerned about service/core inflation.