BOF head and ECB gov council member Villeroy out on the wires 2 Feb

  • whether ECB ends QE or tapers in Sept is not a key issue
  • mon pol is following path of gradual normalisation with confidence and patience
  • ECB will monitor FX impact on inflation
  • will be ready to re-assess if necessary

As per ECB mantra.

  • warns against breaking rule against comp devaluation
  • race to bottom on corp taxes poses fairness issue

Also from Dublin BOI gov Lane:

  • negative rates have been good for banking system

EURUSD lower again at 1.2446 but EURGBP steady at 0.8795 still as GBPUSD also retreats to 1.4148

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