AI Sentiment: Bullish
Reason: The article expresses a positive sentiment, as the ECB Vice President Luis de Guindos expresses confidence in the ECB's ability to handle inflation and maintain economic stability despite current challenges. He also forecasts a 4% economic growth for the Eurozone in 2023.



The European Central Bank (ECB) Vice President, Luis de Guindos, recently expressed his confidence that inflation will align with the bank's target by the year 2025. In a recent interview, de Guindos emphasized that the ECB is not behind the curve when it comes to inflation and that the institution is prepared to adjust its policy as needed.

He further stated that the ECB's expectations for inflation in 2025 are not out of line with those of market analysts. The bank's goal is to see inflation at around 2%, which is a considerable increase from the current 1.5%. The Vice President believes the convergence to the target will be gradual, and he does not anticipate a sudden surge in inflation.

While de Guindos acknowledged that the geopolitical situation, particularly the Russia-Ukraine crisis, may cause temporary inflation, he also added that the ECB has the necessary tools to deal with such an increase. He stressed that the bank's primary focus is to ensure price stability and to support the European economy during these challenging times.

The ECB has been under pressure to raise interest rates due to the recent surge in inflation across Europe. However, de Guindos warns against any hasty actions, stating that the ECB needs to act prudently and consider all potential consequences before making any decisions.

Despite the challenges, de Guindos remains optimistic about the economic recovery in the Eurozone. He mentioned that the economic indicators are showing positive signs, with a strong rebound in activity and employment, and a significant reduction in economic uncertainty. Moreover, he predicts a robust economic growth at 4% for the Eurozone in 2023.

In conclusion, while the ECB acknowledges the current inflation challenges, it remains confident in its ability to steer it towards its target in the coming years. With a cautious approach to interest rate adjustments and a focus on economic recovery, the ECB aims to maintain stability and support the European economy.