ECB Vice President Dismisses Inflation Concerns Despite Euro’s 11% Rally Against Dollar

The European Central Bank’s Vice President Luis de Guindos expressed confidence about the eurozone’s economic outlook despite challenges from U.S. tariffs and a strengthening euro.

He downplayed concerns about inflation falling too low, noting that tight labor markets and steady wage growth around 3% will help maintain inflation near the ECB’s 2% target.

While the euro has gained 11% against the dollar in three months, de Guindos sees this as manageable and not a major obstacle.

He also dismissed speculation that the euro could soon challenge the dollar’s dominance as the world’s reserve currency, citing the eurozone’s lack of necessary financial infrastructure.