ECB’s Schnabel says inflation is now close to target
The post ECB’s Schnabel says inflation is now close to target appeared on BitcoinEthereumNews.com. European Central Bank (ECB) board member Isabel Schnabel said over the weekend that the central bank can take its time on interest rates, adding that inflation is now close to the ECB’s target. Key quotes We are no longer restrictive. I believe that we can now take the time to look at the situation first. We now have maximum flexibility at this interest rate level. Rates are now at a neutral level. The European Central Bank can take its time on interest rates with monetary policy now set at a neutral level that is no longer restrictive. We have now reached neutral territory with our monetary policy and rates — this means that we are no longer restrictive, we can now take our time. Inflation is now close to our target. We will also get there this year. All in all, this is good news as far as inflation is concerned. Market reaction At the time of writing, EUR/USD is trading 0.17% higher on the day at 1.1414. ECB FAQs The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros…
The post ECB’s Schnabel says inflation is now close to target appeared on BitcoinEthereumNews.com.
European Central Bank (ECB) board member Isabel Schnabel said over the weekend that the central bank can take its time on interest rates, adding that inflation is now close to the ECB’s target. Key quotes We are no longer restrictive. I believe that we can now take the time to look at the situation first. We now have maximum flexibility at this interest rate level. Rates are now at a neutral level. The European Central Bank can take its time on interest rates with monetary policy now set at a neutral level that is no longer restrictive. We have now reached neutral territory with our monetary policy and rates — this means that we are no longer restrictive, we can now take our time. Inflation is now close to our target. We will also get there this year. All in all, this is good news as far as inflation is concerned. Market reaction At the time of writing, EUR/USD is trading 0.17% higher on the day at 1.1414. ECB FAQs The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros…
What's Your Reaction?
