European Central Bank's Guindos Calls for Caution on Interest Rates, Says War Will Impact the Economy

Golden Finance reports that on May 11th, European Central Bank Vice President Luis de Guindos stated that caution should be exercised when considering interest rate hikes, as the full impact of the Iran war on economic expansion has not yet manifested. In an interview published on Monday, Guindos said that energy shocks tend to be reflected more quickly in inflation indicators rather than economic growth indicators, and he expects that the upcoming economic activity data “won’t look good.” “So I urge caution: in the coming weeks, the impact on economic growth will become more apparent,” the Spanish official said. “Moreover, we need a clearer conclusion to this conflict.” His term will end this month. (Sina Finance)