The member of the Executive Committee of the European Central Bank (ECB), Fabio Panettasaid on Friday that the normalization of the central bank’s monetary policy should remain gradual, as reported by Reuters.
more statements
“The price increase does not reflect excess demand in the euro area.”
“Action against fragmentation is necessary for us to fulfill that mandate.”
“Inflation expectations are around 2% and salary increases remain moderate.”
“In vulnerable countries, fragmentation would lead to capital outflows and higher yields, leading to overly tight financing conditions.”
“The less vulnerable countries would experience capital inflows that would compress yields.”
“Therefore, measures to avoid fragmentation are not at odds with standardization.”
“Beyond ending negative rates, further tightening of our monetary policy will depend on how the outlook evolves.”
EUR/USD trades around 1.0450/60 on Friday with limited rallies validating a small weekly drop. EUR/GBP is firm above 0.8660, having the highest weekly close.
Source: Fx Street
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