13 Nov 2013
Euro under further pressure following ECB exec board member comments
FXstreet.com (London) - The euro continues to come under pressure following comments made by European Central Bank executive board member, Peter Praet. Speaking to the Wall Street Journal, Praet said that: “The European Central Bank could start to buy assets or cut its deposit rate into negative territory if that was needed to get inflation to the central bank's target.”
Praet added: "The balance-sheet capacity of the central bank can also be used (to fulfil the inflation mandate).”
"This includes outright purchases that any central bank can do."
The comments come after the ECB surprised many last week by cutting the main refinancing rate from 0.25 to a historic low of 0.25 percent in a bid to fight Eurozone deflationary pressures.
EUR/GBP has sunk to a low of GBP0.8385 after positive UK data and a forward revision of forecasts for the Bank of England’s 7 percent unemployment rate for considering rate hikes.
Praet added: "The balance-sheet capacity of the central bank can also be used (to fulfil the inflation mandate).”
"This includes outright purchases that any central bank can do."
The comments come after the ECB surprised many last week by cutting the main refinancing rate from 0.25 to a historic low of 0.25 percent in a bid to fight Eurozone deflationary pressures.
EUR/GBP has sunk to a low of GBP0.8385 after positive UK data and a forward revision of forecasts for the Bank of England’s 7 percent unemployment rate for considering rate hikes.