ECB's Panetta: Russian invasion of Ukraine intensifying uncertainty
|"Faced with such uncertainty, there is a case for the central bank to accompany the recovery with a light touch," European Central Bank (ECB) policymaker Fabio Panetta said on Monday, per Reuters. "The ECB should take moderate and careful steps in adjusting policy, so as not to suffocate the as yet incomplete recovery," Panetta added.
Additional takeaways
"We will take any measures necessary, using all our instruments to shore up confidence and stabilise financial markets."
"The dramatic conflict in Ukraine is now weighing negatively on both supply and demand conditions exacerbating risks to the medium-term inflation outlook on both sides."
"Inflation outlook has pitfalls on both sides."
"In this environment, it would be unwise to pre-commit on future policy steps until the fallout from the current crisis becomes clearer."
"We should adjust policy carefully and recalibrate it as we see the effects of our decisions, so as to avoid suffocating the recovery and cement progress towards price stability."
"ECB stands ready to act to avoid any dislocation in financial markets that could stem from the war in Ukraine and to protect the transmission of monetary policy."
"Russian invasion of Ukraine is now intensifying this uncertainty."
"We need to be certain that removing accommodation too suddenly will not trigger market turmoil."
"Would be imprudent to move further until we have strong confirmation that both actual and expected inflation is durably re-anchoring at 2% in a world of tighter financing conditions."
"If we respond to a false signal and react to a rise in inflation that might not be lasting, we could suffocate the recovery."
"Inflation outlook is stronger today than it was before the pandemic."
"Labour market is not looking excessively tight."
"Danger of high inflation becoming entrenched seems contained at the moment."
Market reaction
The shared currency showed no reaction to these comments and was last seen rising 0.5% on the day at 1.1211.
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.