The European Central Bank (ECB) Governing Council Member Olli Rehn dismissed the recent increase in price pressures as temporary, in his scheduled speech on Tuesday.
Key quotes
“PEPP will be conducted in flexible manner to help counteract disinflationary effects and also to support growth.”
“Accommodative financing conditions are key to support euro area recovery.”
“Recent rise in inflation is due to one-off and temporary factors.”
“Currently no signs of a rise in broader price pressures, slack remains high.”
“ECB did not discuss the issue of transitioning away from PEPP.”
“Will do so in due course.”
“For now, need to continue with significant purchases under PEPP.”
“Stands fully behind last week's ECB decisions.”
“Need to look through short-term variation in inflation.”
Market reaction
The ECB policymaker Rehn’s dovish comments drag EUR/USD further away from daily highs of 1.2149.
The spot is currently trading at 1.2131, still up 0.10% on the day.
