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19 May 2014
ECB's Weidmann: The central bank will closely monitor euro exchange rate moves
FXStreet (Łódź) - Speaking at a finance conference in Frankfurt on Monday ECB Governing Council member and Bundesbank chief Jens Weidmann said that inflation would remain low in the Eurozone for an extended period of time. He stated that the central bank didn't have a foreign exchange rate target but that the FX impact on price stability would be taken into account.
He assured that the ECB would monitor the developments in the euro exchange rate, before modifying monetary policy in any way, but stressed that “it would be short sighted to look at one-dimensional FX rise without looking at stimulating effect of lower bond yields.”
Furthermore, Weidmann said that the euro's current strength was partly due to capital inflows. He also stressed the need for Eurozone Member States to boost the competitiveness of their economies.
Following Weidman's remarks the EURUSD climbed slightly to 1.3719.
He assured that the ECB would monitor the developments in the euro exchange rate, before modifying monetary policy in any way, but stressed that “it would be short sighted to look at one-dimensional FX rise without looking at stimulating effect of lower bond yields.”
Furthermore, Weidmann said that the euro's current strength was partly due to capital inflows. He also stressed the need for Eurozone Member States to boost the competitiveness of their economies.
Following Weidman's remarks the EURUSD climbed slightly to 1.3719.