ECB's Constancio: We will continue using forward guidance to some extent

Eren Sengezer FXStreet

Key highlights from the remarks by Vítor Constâncio, Vice-President of the ECB, at the ECB Workshop “Monetary Policy in Non-Standard Times”, 11 and 12 September 2017, Frankfurt am Main:

Inconsistent or vague promises about the future course of monetary policy often introduce additional noise and raise rather than reduce economic uncertainty
We will continue using forward guidance to some extent, but knowing that it is an imperfect tool and therefore only as one of the various non-standard measures that we can activate when deemed necessary
Non-standard measures proved crucial to avoid deflation and foster the economic recovery
We have not yet achieved our main goal of inflation being below but close to 2 percent
By keeping a sufficient degree of monetary policy accommodation we can be confident that our goal will eventually be reached

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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