ECB’s Panetta: Monetary policy would remain restrictive even after several rate cuts

  • Monetary easing can be expected over the coming months if data confirms our forecasts
  • Must avoid policy becoming too restrictive
  • That could push inflation below the ECB’s symmetrical target
  • Inflation is expected to ease further in the next few quarters
  • ECB will take into account Fed policy, but not be bound by it

As you’d expect from the ECB for this moment. But I reckon we can see almost similar remarks after the rate cut next week as well.

This article was written by Justin Low at www.forexlive.com. Source