European Central Bank (ECB) Vice President Luis de Guindos said on Wednesday that the economic activity in the Euro area is likely to remain subdued in the coming months, as reported by Reuters.

Key takeaways

"The labour market remains resilient."

"A substantial share of the transmission from financing conditions to the real economy is expected to still be in the pipeline."

"Underlying price pressures remain strong."

"Labour costs are increasingly contributing to domestic inflation."

"We will continue to follow a data-dependent approach."

"The downward impact of our tightening so far on GDP and inflation is estimated to average around 2 percentage points over the 2023-25 period."

Market reaction

EUR/USD showed no reaction to these comments and was last seen rising 0.4% on the day at 1.0507.