- Says we are independent and any other comments could damage ECB independence credibility
That’s polite for “Jog on France”
- Had discussions on exchange rate, very important for price stability and growth
- Strengthening exchange rate in context of low inflation is cause for serious concern
- Discussion today can be seen as preview for June policy meeting
- Governing council is not resigned to have low inflation for too long
- Risks to recovery include possible weakening of global demand, geopolitics and FX
The FX comments are not really different from what we’ve heard before. The comment about not putting up with low inflation for too long is pausing euro buyers
