ECB’s Panetta: Inflation will remain subdued for a protracted period
|The Euro area price pressures will remain subdued for a prolonged period, the European Central Bank (ECB) Executive Board Member Fabio Panetta said Monday.
Key quotes
We can guarantee our commitment to support the recovery.
For monetary policy, this means providing certainty about financing conditions well into the future.
The PEPP envelope can be further expanded and extended, if warranted.
We stand ready to adjust all our instruments if downside risks to the outlook materialise, including those stemming from exchange rate dynamics.
An appreciation of the euro could significantly affect euro area inflation.
There should be no doubt here: the ECB will not accept inflation settling at levels that are inconsistent with its aim.
Financing conditions will need to remain very supportive even as growth accelerates from next year onwards.
EUR/USD challenges daily highs
EUR/USD extends its advance above 1.2150, mainly driven by the risk-mood-led US dollar weakness.
The spot trades at 1.2160, up 0.38% on the day.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.