ECB's de Guindos says risks are tilted to the downside, macroeconomic projections will be much more complicated now

ECB Vice President de Guindos indicating that risks are tilted to the downside suggests the central bank may face growing challenges in its policy formulation. This could lead to more cautious guidance on interest rates and might influence market expectations surrounding future ECB actions, particularly in the context of fixed income and the euro. The implication is that we could see increased volatility in euro-area assets if these concerns materialize.