ECB’s de Guindos sees higher core inflation “over the medium term”

FILE PHOTO:  Vice-President of the European Central Bank Luis de Guindos speaks during an event in Riga
FILE PHOTO: Vice-President of the European Central Bank Luis de Guindos speaks during an event marking Latvia’s five years with the Euro in Riga, Latvia January 7, 2019. REUTERS/Ints Kalnins

February 11, 2019

MADRID (Reuters) – Underlying inflation in the euro zone is still expected to rise “over the medium term” thanks to higher wages and to the European Central Bank’s easy monetary policy, the ECB’s Vice President Luis de Guindos said on Monday.

“Wage growth has become increasingly broad-based in recent years,” de Guindos said in Madrid. “This, together with our monetary policy measures and the ongoing economic expansion, is expected to translate into higher underlying inflation over the medium term.”

(Reporting By Paul Day; Writing by Francesco Canepa in Frankfurt)

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