The European Central Bank is prepared to resume its money-printing programme, according to its vice-president Luis de Guindos.

Meanwhile, the euro tumbled to 22-month lows against the dollar late last week, as US growth data remains robust both in terms of capital goods investment and real wage growth.

With decelerating growth and inflation in the Eurozone, de Guindos reignited speculation about the continuation of a €2.6 trillion bond-buying programme that officially ended in December 2018. Meanwhile, the forthcoming European elections in May are weighing negatively on the Eurozone’s economy, as markets expect a surge in euro-critical movements.

“Quantitative easing is something that we can use again if needed,” de Guindos told an audience in New York, although he made clear that the resumption of bond-purchases beyond the current levels has not yet been discussed.

Officially, the ECB projects a rebound in Eurozone growth during the second half of 2019, but De Guindos’ announcement consolidates the overall impression that a prolonged period of subdued growth may be ahead.