Luis de Guindos warned that the difficult economic conditions facing the Eurozone would test both individuals and companies.

In an interview published on the bank’s website today, ECB Governor Guindos drew attention to the problematic conditions in the Eurozone economy.

“High inflation across Europe coincides with an economic slowdown and low growth. Both companies and households must act prudently and focus on the long-term.”

Guindos reiterated that interest rate decisions would be evaluated based on data at each meeting. Expressing that he expects a short-term recession, Guindos predicted that the economy would grow again in the second quarter of next year.

“The current situation is undoubtedly a challenge for companies and sustainability. With a recession on the horizon, the high uncertainty environment makes the situation even more challenging for businesses and entrepreneurs. Therefore, it is important to remain vigilant.”