The European Central Bank (ECB) is ready for all its instruments and policy options to include a deposit rate cut if necessary, said the member of the Governing Council of the ECB on Monday, Francois Villeroy Galhau, Reuters reported.
Featured statements:
“The recent rise in inflation in the euro area should not be overstated, it includes temporary factors.”
“No risk of overheating in Europe“.
“We should be willing to accept above-target inflation for some time after a past deficit.”
“The forward-looking orientation could be strengthened to make the tolerance for exceeding inflation explicit.”
“As much as the recent performance increase is not justified, the ECB must react against him“.
“The first tool is actively using the flexibility of our Pandemic Emergency Purchase Program (PEPP) purchases.”
Market reaction
The EUR / USD pair pushed lower after these comments and was last seen shedding 0.35% on the day at 1.2030.
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