Investing.com -- The European Central Bank (ECB) has expressed optimism that inflation is moving towards its 2% target. However, the Bank has emphasized the need for caution and prudence in making further changes to interest rates, due to the high level of uncertainty. This information was shared by ECB Vice President Luis de Guindos on Thursday.
The ECB Vice President also warned of the potential consequences of an outright trade war with the United States. While such a conflict could cause inflation to rise, the more significant impact would likely be a slowing of growth. This would be partly due to a decrease in business confidence, which is a crucial factor for investment decisions, according to de Guindos. He made these remarks during a financial conference.
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