Speaking to Econostream Media, the member of the Governing Council of the ECB and director of the National Bank of Belgium, Pierre Wunsch, He said that the global macroeconomic environment had changed significantly in the past three months, thus increasing the uncertainty faced by policy makers at the ECB. It would not take much in terms of exogenous developments to bring euro zone consumer price inflation to 2.0%, he added. “We must all be patient, but we must not exclude that inflationary forces are quite strong and will require a reaction at some point,” he told Econostream Media.
Market reaction
The EUR/USD has seen a drop in recent trading as a result of recent strong US retail sales data and aggressive comments from the Fed, which have pushed US yields higher. The pair has fallen below the lows of the previous session just above 1.1350 and is now at 1.1330. Needless to say, these are new yearly lows.
Therefore, it seems that the latest statements by the aggressive line member of the ECB, Wunsch, have been flatly ignored. Aggressive members of the ECB generally constitute a minority who cannot affect the policy direction of the board.
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