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ECB's de Guindos says market might be underestimating inflation

FILE PHOTO: EU finance and economy ministers hold informal meeting in Berlin

FRANKFURT (Reuters) - Financial investors might be underestimating the "persistence of inflation", the European Central Bank's vice-president Luis de Guindos said on Friday as he listed possible risks to financial stability.

He added there needed to be a clear deceleration in headline and underlying inflation for expectations about future ECB interest rate hikes to stabilise.

(Reporting By Francesco Canepa; Editing by Alex Richardson)