ECB’s de Cos says economic growth might disappoint

Growth in the euro zone might disappoint, dragging down inflation with it, European Central Bank policymaker Pablo Hernandez de Cos said on Tuesday.

The euro zone has been stagnating for at least a year but the ECB expects the economy to begin accelerating this spring.

“Risks to growth are clearly to the downside,” the Spanish central bank governor told an event in Madrid.

De Cos cautioned risks to inflation were balanced, however, because of possible supply shocks. He repeated his expectation that the ECB could start cutting interest rates in June, depending on the incoming data.
Source: Reuters (Reporting By Francesco Canepa; Editing by Alex Richardson, Kirsten Donovan)