The chief economist of the European Central Bank played down his previous remarks that a substantial level of monetary policy is still needed in the euro area, after those comments sent the euro to a session low on Tuesday.
The euro dropped to $1.121 on Tuesday morning, after the ECB's chief economist Peter Praet told a conference in London Tuesday that a significant monetary policy stimulus is still needed.
Speaking to CNBC, immediately after, Praet said: "I don't think it is new, actually. We always communicate that to reach this inflation path, close to 2 percent in the medium-term, we need a substantial degree of monetary accommodation."
"When we announced that we anticipate to end the asset purchase program at the end of this year, we said that we still needed a substantial degree of accommodation to support the base scenario," Praet also told CNBC's Joumanna Bercetche on Tuesday.
Praet, in his keynote address, earlier on Tuesday, said central banks across the world have already tightened their monetary policy stance and unconventional policies have been wound down as well as policy rates have been "gradually increased."
He, however, noted that in the euro area "significant monetary policy stimulus is still needed to support the further build-up of inflationary pressures and headline inflation developments over the medium term."
from Top News & Analysis https://ift.tt/2B3WFK3via IFTTT
No comments:
Post a Comment