ECB’s Villeroy: Level of ECB's key short-term rates and time horizon of policy measures matter

Dhwani Mehta FXStreet

Further comments are crossing the wires from the European Central Bank (ECB) Governing Council member and Bank of France Head Villeroy de Galhau, as he now speaks about the central bank’s monetary policy and Brexit issue.

“What matters is not only level of ECB's key short-term rates but time horizon of policy measures.”

“Monetary, macro-prudential policies have traditionally been guided by separation policies, but soft coordination may be more promising than a strict one.”

“Brexit is and remains bad news for everybody but above all for British economy.”

“Countries with high public debt should make their public finances more growth friendly.”

“Countries with fiscal space should use it quickly, even more so when they suffer an asymmetric shock like Germany.”

At the press time, the EUR/USD pair continues to test the bids just ahead of the 1.10 handle amid a cautious market environment and ahead of the German Prelim CPI report.

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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