De Guindos says the European Central Bank must take decisive steps to stem high inflation

De Guindos says the European Central Bank must take decisive steps to stem high inflation

FRANKFURT (Reuters) – European Central Bank Vice President Luis de Guindos said on Thursday the European Central Bank should prioritize inflation control over growth concerns and needed specific policy steps to prevent high price growth from taking hold.

“Monetary policy needs to focus on price stability,” de Guindos said in Lisbon. Decisive action is necessary to keep inflation expectations constant, which in itself contributes to achieving price stability and avoiding the effects of the second round of inflation.

“We need to be wary of the effects of the second round, such as the risk of a continuing upward shift in inflation expectations,” he added.

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