Guindos Says ECB Must Consider Weaker Growth in June Decision

ECB Vice President Luis de Guindos said the central bank should assess how much the Iran war is hurting the economy before deciding whether to raise rates next month. The comment signals a more cautious policy stance and suggests geopolitical risk could influence the ECB's rate path. Markets may view this as mildly dovish and relevant for European rates and risk assets.

Analysis

ECB Vice President Luis de Guindos said the central bank should assess how much the Iran war is hurting the economy before deciding whether to raise rates next month. The comment signals a more cautious policy stance and suggests geopolitical risk could influence the ECB's rate path. Markets may view this as mildly dovish and relevant for European rates and risk assets.