The policy maker of the European Central Bank, Pablo Hernandez de Kosnoted on Thursday that the inflation in the euro zone has consistently surprised to the upside in recent quarters and in recent months, according to Reuters.
Featured Statements:
“We should now use the reinvestment flexibility of the PEPP proactively, monitoring whether it is enough to ensure that our monetary policy is properly transmitted throughout the euro area.”
“A premature tightening of monetary policy would only increase the negative consequences“.
“In a highly uncertain scenario, including geopolitical tensions in Ukraine, the ECB should not be an additional source of uncertainty.”
“The ECB should rather maintain a clear, gradual and predictable path for your policy.”
“The direction of monetary policy that we need to head in is clear, but we should not jump to conclusions on timing.”
“The process will be gradual and data dependent.”
market reaction
The shared currency remains on the defensive after these comments and the EUR/USD was last seen losing 0.12% on the day at 1.1358.
Source: Fx Street
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