ECB’s De Guindos: Euro exchange rate is fundamental for inflation
|“The exchange is a fundamental economic variable which affects imports, exports, imported inflation or deflation,” the European Central Bank (ECB) Vice President Luis De Guindos said during a webinar on Thursday.
Additional quotes
“A relatively brisk and intense fluctuation in the exchange rate affects inflation expectations and the conditions that determine inflation.”
“The ECB could not be happy with its own forecast for a 1.3% inflation rate in 2022.”
Market reaction
The euro is little affected by the above comments, as EUR/USD remains at the mercy of the US dollar dynamics. Although mixed Eurozone inflation numbers dragged the pair below 1.1800.
EUR/USD, currently, trades 1.1791, down 0.18% on the day.
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