Inflation to remain at 4%-5% at year end in euro zone, ECB’s De Guindos says

© Reuters. FILE PHOTO: Vice-President of the European Central Bank (ECB) Luis de Guindos gives a statement during the second day of the Informal Meeting of EU Ministers for Economics and Financial Affairs in Berlin, Germany September 12, 2020. Odd Andersen/Pool via

MADRID (Reuters) – Inflation in the euro zone will remain at 4%-5% at the end of the year, ECB’s Vice President Luis de Guindos said on Wednesday on Spain’s state broadcaster TVE.

With inflation soaring to a record high 7.5% in the 19-nation euro currency zone last month, policymakers are increasingly advocating a rapid unwinding of stimulus, and several have made the case for a rate hike already in July.

De Guindos said ECB’s bond purchases, known as quantitative easing, will likely stop in July.