ECB’s Jens Weidmann on the wires
- All Governing Council Members Agree Loose Mon Pol Is Needed For The Time Being To Support Domestic Price Dynamics
- Complete Normalisation Of Mon Pol Will Be a Long Path That Should Be Steadily Pursued If Price Outlook Allows
- A Rapid Cessation Of Net Asset Purchases With A Clearly Communicated End Would Have Been Reasonable
- Sharp Rate Hike Following Long Phase Of Low Rates Would Be Especially Burdensome To Banks
- Current EZ Growth Is Remarkably Strong
- The Eurosystem Has Become Largest Creditor Of Members States, Which Holds A Danger For Politicising Mon Pol
The euro has lost a few pips as Weidmann would be expected to be more hawkish than he has been here, especially coming on the back of the ECB minutes yesterday which showed a louder dissension to current forward guidance. EURUSD trades down to 1.2020 from 1.2053.