ECB's de Guindos: Will start with passive QT

Eren Sengezer FXStreet

"It's very difficult to have financial stability without price stability," European Central Bank (ECB) Vice President Luis de Guindos said on Wednesday, as reported by Reuters.

"I think that the main risk now for financial stability, for growth, is to have inflation at very high levels," de Guindos added.

ECB Vice President further noted that the balance sheet reduction must be implemented with prudence, noting that they will start with passive quantitative tightening.

Market reaction

The Euro (EUR) preserves its strength following these comments and EURUSD was last seen gaining 0.6% on the day at 1.0412.

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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