- It makes sense to follow a data-dependent approach
- While recent trade agreements have reduced uncertainty somewhat, the overall impact of the change in the global policy environment will only become clear over time
- A persistent movement in the Euro on average has a multi-year impact on economic activity and inflation
- These effects will be larger than the average if Euro appreciation is more due to external factors
He keeps the door open for further rate adjustments here, but again that will happen only if the data supports such an action. Many ECB members have already said that small or short term deviations from the 2% inflaiton target won't call for a policy response.
He also touched on the euro appreciation and how that could weigh on economic activity and inflation. ECB's de Guindos said previously that he would start to get uncomfortable if EUR/USD rises above 1.20.
