Speaking on ECB policy
She adds:
- The appropriate degree of expansion and the necessary tools are moot points
- time has come to put the unconventional tools back into the box
- we should begin to scale back our bond purchases at the beginning of next year
- low interest rates are justified; have side effects
- it is important that we really move toward the exit step-by-step but steadily and in a clear direction
- bond purchases will come to an end, while interest rates will remain low, well past the horizon of net asset purchases but we still need to decide on the time frame
- inflation has picked up, but not as fast as we expected
- all the factors that are holding down inflation seems to be temporary
- I think we should begin reducing our bond purchases next year
- bond purchase reduction should be done gradually until we are no longer purchasing additional bonds
- total time bonds initially remain constant, as with the expansive effects
- inflation will return to article, it's just a question of time
- factors that are holding down inflation seem to be temporary
The EURUSD is trading higher and is approaching its 200 hour MA at 1.1750. A move above would be more bullish. The price of the EURUSD has not traded above its 200 hour MA since September 22nd.
