ECB's de Guindos sees strong economic rebound in 2021/22

The European Central Bank (ECB) Vice President Luis de Guindos said that he “expects a strong economic rebound in 2021/22,” while speaking to “Onda Cero” radio in Madrid.

 Additional quotes

“Activity is seen recovering pre-pandemic levels in Q122 (from Q322).”

“Monetary policy should be carefully adjusted and always looking at the progress of the pandemic.”

”ECB’s monetary stimulus should be removed gradually and prudently.”

“The recovery in the services sector remains key for Spain, as the country relies greatly on tourism.”

“Investments coming from European funding remain key for the region’s future.”

“Inflation is seen around 3% by year-end. The pick-up in prices is still deemed as temporary mainly due to base effects.”

“Expect inflation to remain transient and not become structural.”

Market reaction 

EUR/USD is keeping its range below 1.1950, little moved by the above comments.