Luis de Guindos, vice president European Central Bank (ECB) warned of the problem low bank profitability despite the “increase in rates” due to the economic slowdown”solvency companies and peopleKarol Wojtyla explained in an action organized by the San Juan Pablo II Institute and the Renta 4 Foundation, “and because financial institutions’ financing costs will become more expensive.”
The improvement in bank profitability, which has been reflected in stock prices in recent months, has a certain mirage effect,” he summarized. He also expressed his apparent concern”don’t underestimateMarkets as inflation continues. “The markets are wrong sometimes,” he said.
On the other hand, he warned of the potential conflict between an expansionary fiscal policy and a restrictive monetary policy, which could lead to turbulence in the markets, as in the case of the UK.
Likewise, Guindos celebrated that inflation “started to slow down because of it”.fall in energy prices, both gas and oil, but especially gas“To end bottlenecks in supply chains and for the labor market to perform well,” he said. However, he warned that core inflation has not yet started to moderate.
Despite everything, it helped the eurozone come out of recession. “We expected a technical recession and it didn’t happen”, Confessed. “Everything seems to predict positive growth this year as well,” he added.