Further comments by ECB member Klaas Knot
- No reason to expect more than a little slowing of growth
- QE remains in the toolbox, but only for extreme circumstances
Well, at least someone is finally addressing the elephant in the room:
Core CPI in the Eurozone has been ranging around +0.9% y/y to +1.1% y/y over the past seven months. And that doesn't suggest that we'll get a solid uptick in inflationary pressures to come in the near future.
But as long as inflation isn't moving back towards 0% then the immediate focus for the ECB is the flagging economic growth conditions in the Eurozone.
The euro continues to hold steady this week, advancing against the dollar with EUR/USD now at 1.1455. EUR/GBP sits at 0.9046, rather flat on the day.
