"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.

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