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ECB must move policy with caution and prudence, VP says

By Thomson Reuters Mar 27, 2025 | 8:20 AM

BRUSSELS (Reuters) – The European Central Bank is optimistic that inflation is moving towards its 2% target but further changes in interest rates must be handled with caution and prudence given abundant uncertainty, ECB Vice President Luis de Guindos said on Thursday.

An outright trade war with the United States could push up inflation but the biggest impact would be a drag on growth, partly through curbing business confidence, a key ingredient in investments, de Guindos told a financial conference.

(Reporting by Balazs Koranyi; Editing by Peter Graff)