ECB's Mersch: It is obvious that exchange rate has had effects on inflation

Comments by ECB governing council member, Yves Mersch, to Bloomberg

• The ECB does not target the exchange rate
• There is a consensus language at the global level on exchange rate talk
• ECB will monitor very closely the effects of exchange rate developments
• But this is by no way a change in strategy
• PEPP has been extremely efficient, but it is an emergency instrument
• It must be temporary, such flexibility cannot be applied to QE

On the economic outlook, Mersch says that incoming information isn't pointing to a further deterioration - at least not in terms of prices and production. Adding that uncertainty remains, so essentially the ECB is still caught in a 'wait and see' mode.

As for the comments on the euro exchange rate, they aren't really anything that we haven't heard of over the past few weeks since Lagarde's press conference.