ECB’s De Guindos: Monetary policy cannot not be the only tool to revive economy

Dhwani Mehta FXStreet

The European Central Bank (ECB) Vice President Luis de Guindos crossed the wires last minutes, via Reuters, with the key comments found below.

Monetary policy cannot be the only tool to revive the economy.

Sees economic risks tilted to the downside.

Core inflation in Eurozone still muted.

As long as inflation in Eurozone does not converge to our inflation target interest rates won't rise.

Hard Brexit would increase volatility and have a negative impact on global economy.

Hard Brexit is not fully priced in by markets.

Fiscal and monetary policy should be coordinated.

Countries with fiscal space must be expansive.

The shared currency is seen being offered on the above downbeat remarks, dragging EUR/USD to session lows near 1.1050. Markets await Eurozone final CPI data for fresh impetus.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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