ECB’s de Guindos: Our policy response remains data-dependent

European Central Bank (ECB) Vice President Luis de Guindos said on Friday, “our response will depend on how the data evolves in the coming months.”

Key quotes

“We are dependent on the data we receive.”

“There is a very high level of uncertainty.”

“Monetary policy has to adjust to these new structural features that may push inflation upwards.”

“As a general recommendation, fiscal policy has to be compatible with the process of monetary policy normalization.”

“We will do whatever is necessary to bring inflation back to our 2% target over the medium term.”

“It is very difficult to determine the level of the terminal rate.”

Market reaction

The shared currency is unfazed by the above comment, with EUR/USD trading 0.14% higher on the day at 0.9787.

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