ECB’s Herodotou: Can act again if inflation outlook worsens

Dhwani Mehta FXStreet

The European Central Bank (ECB) Governing Council member and Governor of the Central Bank of Cyprus Constantinos Herodotou expresses his concerns on the inflation outlook while speaking in a Reuters interview on Wednesday.

Key quotes

“Risks to the outlook remain on the downside.”

“Economic uncertainty remains high.”

“Can act again if inflation outlook worsens.”

Earlier today, the ECB Governing Council member Yannis Stournaras voiced the same opinion on the Euro area economic outlook, noting that the risks are still tilted to the downside.

This comes despite the latest European Union (EU) leaders’ agreement on the EUR 750 billion Recovery Fund to tackle the economic impact of the coronavirus pandemic.

EUR/USD unfazed

The shared currency shrugs-off the above comments, as EUR/USD trades firmer at 1.1753, up 0.35% on a daily basis, courtesy of the continued dollar dumping. Focus shifts to the Fed decision.

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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