The head of economic policy at the European Central Bank (ECB), Pablo Hernández de Cos, declared on Monday that “future monetary policy decisions will depend on three factors, such as new economic and financial data and underlying inflation“.
Additional comments
“Future monetary policy decisions will depend on how the various sources of risk crystallizeincluding those experienced recently in the financial markets.”
“Monetary policy decisions also take into account the intensity of the transmission of monetary policy.”
“The tensions in the financial markets have generated a further tightening of financial conditions, affecting the outlook for economic activity and inflation.”
“All these factors should be taken into account in our next meetings.”
“Over the medium term, the main risk to inflation comes from a persistent rise in price expectations above our inflation target.”
“On the contrary, the disinflation process could be further accelerated if the heightened tensions in financial markets continue.”
“The ECB and the national authorities are ready to act as and when necessary to maintain financial stability in the euro areaas a necessary prerequisite to guarantee the objective of price stability.”
Source: Fx Street
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