ECB's Smets says they should not accept below target inflation
ECB's Smets out on Reuters 12 March
- inflation may take longer to reach objective as output gap could take longer to close than anticipated
- too early to conclude that growth is levelling off
- FX volatility as much in focus as before
- no discussion on revising guidance in March meeting other than to remove easing bias
Yep, and give the bulls false hope for a brief while
Smets is ECB Executive Board Director General Economics. Before becoming Counsellor to the President in December 2013, he served as Director General Research from 2008. Mr Smets previously worked at the Bank for International Settlements in Basel, Switzerland. He holds a PhD in economics from Yale University.
EURUSD 1.2297 near session lows EURGBP still 0.8880 but EURJPY lower at 131.03 as USDJPY fails to rally.
Yen demand generally prevailing. GBPJPY down to 147.50 and helping to cap cable, now down to 1.3845