Beniot Coeure speaking in Paris

  • Outlook for global growth has clearly weakened
  • Financial market volatility affects FX rate
  • ECB doesn't have a FX target
  • FX rate affect prices and inflation developments (we're banging that drum again are we?)
  • Euro appreciated fairly significantly in recent weeks (and the effect from the drop from 1.40 is...???)
  • Inflation expectations have stabilised
  • Whatever happens, inflation will only rise very slowly in the Eurozone
  • Eurozone economic activity should continue to improve but less than previously thought
  • Recovery has not been derailed by turbulence in recent month
  • Potential growth in Eurozone is not high enough
  • Mon pol can't change long term growth
  • Risks to EZ economy are to the downside

Bank of Spain's governor Luis Maria Linde is also out saying that the Fed waiting shows global growth has weakened a little

EURUSD has softened from 1.1450 to 1.1423