European Central Bank Vice President Luis de Guindos said on Thursday that today it is very difficult to predict what the ECB will decide at its April meeting as the policymakers will receive more data, see how the different elements are evolving and have more clarity on tariffs by that time.
The official, however, stressed the need for policymakers to be extremely prudent and cautious in their decisions.
De Guindos also noted that the ECB's policymakers are optimistic about consumer prices, noting that the disinflation process remains on track. He also added that lingering price pressures in the services sector are expected to start to decelerate as well.
Regarding tariffs, the ECB's Vice President stated that their main impact would be on economic growth, with only a short-lived effect on prices.