The ECB president has once again said that any additional strengthening of the euro would warrant non-standard measures such as quantitative easing.
Yesterday he told the IMF spring meeting:
Over the past few months the exchange rate has become more and more important for price stability.
We are aware it’s not the only element, but it has been an important element. So in a sense if you want monetary policy to remain as accommodative as it is today, a further strengthening of the exchange rate … would require further monetary policy stimulus.
He also emphasised again though that the euro exchange rate was not a policy target and declined to state a specific level that would trigger further stimulus.
However Draghi said the strength of the single currency had reduced Eurozone inflation by between 0.4 and 0.5%.
The Telegraph has more here
I’m out of here again now to go sailing. After yesterday’s dismal performance by my football team I’m hoping for better success today!
Enjoy the rest of your week-end one and all.
