European Central Bank (ECB) Vice-President Luis de Guindos spoke in Italy over the weekend.
In summary, his comments were, on financial stability:
- The euro-area banking sector is robust
- There is ample capital, liquidity in the sector
- The Bank is closely monitoring current strains in the markets, will respond as is required to ensure both price, and financial, stability
On the economy:
- headline CPI is likely to fall this year
- Underlying inflation, though, is likely to stay firm
- The interplay between higher wage levels, higher profit margins, higher prices may fuel longer-term inflation
