European Central Bank Official: The Banking Crisis May Lead to Slower Growth and Inflation

Luis de Guindos, Vice President of the European Central Bank, indicated that the bank has a "perception" that the recent crisis in the banking sector could lead to a decline in growth and inflation rates. In an interview with the newspaper Business Post, published on the European Central Bank's website, he stated, "Our perception is that it will lead to an additional tightening of credit standards in the Eurozone, and this may find its way into the economy, resulting in slower growth and reduced inflation."