- Analytics
- News and Tools
- Market News
- ECB's de Cos: No clear evidence of de-anchoring of inflation expectations
ECB's de Cos: No clear evidence of de-anchoring of inflation expectations
European Central Bank’s (ECB) policymaker Pablo Hernandez de Cos said on Thursday that he hasn't yet observed clear evidence of de-anchoring of inflation expectations in the eurozone, as reported by Reuters.
Additional takeaways
"Quantitative tightening could potentially cause market turmoil in certain market segments, as supply may outgrow demand and liquidity may dry up."
"This could imperil policy normalisation path at a time in which all our efforts should be focused on it."
"Policy rates are thus a more effective instrument to tighten monetary policy."
"On basis of current information, the median terminal rate value across models is at 2.25%- 2.50%, estimated with significant uncertainty."
"This target-compatible terminal rate is not necessarily the same as the natural or neutral rate."
"At best, we have some estimates about its long-run value, which range from -1 to 0%, equivalent to 1-2% long-run nominal rates."
"Running down APP holdings could lower the terminal rate."
"In case of APP, ECB could potentially decide to start reducing asset stock earlier than markets currently anticipate."
Market reaction
The EUR/USD pair is having a difficult time staging a rebound after these comments and it was last seen losing 0.68% on the day at 0.9668.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
