14 Apr 2014
ECB steps up rhetoric against Euro strength
FXStreet (Bali) - European Central Bank's President Mario Draghi reiterated his concerns over the high Euro exchange rate on Saturday in the G20 gathering, noting the the Central Bank will not hesitate to ease monetary policy further should the Euro get stronger.
The warning message by Draghi represents the most credible threat up to date, stepping up the rhetoric in order to prevent additional deflationary pressures in the Euro zone. Draghi said that the euro's exchange rate had become key to policy and may act as catalyst to easier policies.
"I have always said that the exchange rate is not a policy target, but it is important for price stability and growth. What has happened over the last few months is that it has become more and more important for price stability", Draghi said, via Reuters.
According to Draghi, quoted at a news conference, via Reuters: "The strengthening of the exchange rate would require further monetary policy accommodation. If you want policy to remain as accommodative as now, a further strengthening of the exchange rate would require further stimulus."
"The Fund is recommending more monetary easing to the ECB, and rightly so," said Guido Mantega, Brazil's finance minister, also via Reuters.
The warning message by Draghi represents the most credible threat up to date, stepping up the rhetoric in order to prevent additional deflationary pressures in the Euro zone. Draghi said that the euro's exchange rate had become key to policy and may act as catalyst to easier policies.
"I have always said that the exchange rate is not a policy target, but it is important for price stability and growth. What has happened over the last few months is that it has become more and more important for price stability", Draghi said, via Reuters.
According to Draghi, quoted at a news conference, via Reuters: "The strengthening of the exchange rate would require further monetary policy accommodation. If you want policy to remain as accommodative as now, a further strengthening of the exchange rate would require further stimulus."
"The Fund is recommending more monetary easing to the ECB, and rightly so," said Guido Mantega, Brazil's finance minister, also via Reuters.