Luis de Guindos (BCE): “I am not worried that for a few months the deputy governor will occupy the governor's position” | EUROtoday

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The European Central Bank (ECB) just isn’t involved concerning the interim state of affairs by which the Bank of Spain has been residing since final June 11 Pablo Hernandez de Cos completed his mandate. “I'm not worried that for a few months the deputy governor [Margarita Delgado] occupy the governor's position,” he assured Luis de Guindosvice chairman of the supervisor this Monday.

In his opinion, Delgado is an individual “of recognized prestige” who is aware of “perfectly” the functioning of the ECB and the inner dynamics and doesn’t pose any inconvenience to the choices that the group might make. “The issue of whether there is a vote or not does not seem so fundamental to me. We vote very rarely,” mentioned Guindos in his speech on the course of the Association of Economic Information Journalists (APIE) on the Menndez Pelayo International University (UIMP). ) that was inaugurated immediately in Santander.

However, Guindos has advocated sustaining the unwritten rule of the settlement between the 2 main political events -PSOE and PP- to elect the brand new heads of the Spanish regulator. “The institutional framework, which is the context of democratic life, is made of these types of unwritten agreements and they are very positive for coexistence and the good institutional functioning of the country,” he famous.

He has been extra involved, nonetheless, about worldwide political and geopolitical instability and has known as to not underestimate the repercussions of measures equivalent to tariff modifications. “The breakdown of multilateral trade rules is a serious risk for the world economy that sometimes the potential implications it may have are not perceived with all their intensity,” she mentioned in relation to the upcoming commerce confrontation between the EU and China.

Guindos has warned that “there are important geopolitical, electoral and political risks” on the horizon, such because the elections within the US – “let's see what happens” – or the expansion of extremist actions in numerous nations. “I am concerned about illiberal movements and that they call into question the integration process of the European Union. Sometimes we are not aware of the situation of geopolitical risk that we are experiencing,” he assured, interesting to a “more integrated” method to the thought. of the EU.

Regarding the state of affairs of the banks, De Guindos believes that it’s “good” when it comes to capital and liquidity, though he considers that their profitability has already peaked and any longer it is going to be lowered.

The fee hike has additionally peaked, though the vice chairman of the Eurobank has not make clear the subsequent steps when it comes to financial coverage. “We do not have any type of predetermined path in the evolution of interest rates”, choices will probably be made primarily based on the info and the extent of uncertainty, which is “extremely high.”

All in all, the ECB hopes to converge in the direction of the two% inflation goal subsequent 12 months. “We are in the last mile [de ese objetivo]. The next few months are not going to be easy,” he mentioned, emphasizing the necessity to management wage will increase and inflationary pressures.