By Marta Vilar – MADRID (Econostream) – European Central Bank Vice President Luis de Guindos said on Wednesday that the ECB should take the energy shock into account when it makes a decision in its June meeting.

De Guindos told Bloomberg TV that the ECB had “to take into consideration the impact on growth,” adding that “soft indicators, sentiment indicators … clearly point at an important impact on growth.”

A supply shock would push up inflation while simultaneously weighing on economic growth, he said, noting that “[t]his reduction in domestic demand could reduce inflationary pressures.”

He said price expectations were still “well anchored,” adding that a recession would not be part of the ECB’s baseline scenario in its June projections.

“I don’t know whether we are going to have more clarity with respect to the situation in the Middle East” by then, he said. “But I think that the approach is the correct one: the Governing Council will analyze all this new data, will take into consideration the situation in the Middle East.”