empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

16.07.201912:52 Forex Analysis & Reviews: The ECB should not rely too much on market inflation expectations

Long-term review
This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Central banks should be independent not only of political pressure but also of short-term pressure, such as the perception of inflation by financial markets, said ECB spokesman Francois Villeroy. World central banks are facing increasing pressure from politicians on both sides of the Atlantic to ease monetary policy in line with their plans. At the same time, bond yields have recently decreased amid weak economic data, which forced central banks to take radical new stimulus measures to keep inflationary expectations from falling.

Exchange Rates 16.07.2019 analysis

"We take into account market characteristics but we should not depend on the market; this means that one should not rely solely on inflationary expectations in the market, "said Villeroy. A key indicator of the long-term expectations of financial markets regarding inflation in the Eurozone recently fell to 1.1%. Despite the fact that it has risen to 1.3% since then, this is not only well below the inflation target of the ECB, close to 2%, but less than when the Central Bank launched its bond purchase program in 2015. Villeroy said he regretted the need to remind the importance of the independence of the Central Bank, which is the foundation of modern monetary policy and is increasingly being attacked by politicians.

Irina Maksimova
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off