ECB’s Panetta: Risk of second-round inflation effects remains limited

The European Central Bank (ECB) executive board member Fabio Panetta said on Monday that the “risk of second-round inflation effects remains limited.”

Additional quotes

“Do not seem to be on the path that the economy runs “hot”.”

“The policy mix in Europe today is clearly superior to what we had before.”

“Likelihood that Eurozone demand will be strong enough to test supply constraints.”

“There needs to be confidence that monetary and fiscal policy support will not be withdrawn prematurely.”

Market reaction

The above remarks fail to have any impact on the euro, as EUR/USD extends its choppy trading between 1.1900-1.1950 so far this Monday.

At the time of writing, the spot trades modestly flat at 1.1930.

FX

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