ECB's Centeno: Must be very careful when deciding to remove support measures

European Central Bank (ECB) policymaker Mario Centeno said on Tuesday that there is a risk of losing credibility if the ECB's new guidance does not show more leeway on inflation, as reported by Reuters.

Key takeaways

"ECB must be patient with inflation deviations that it has not tolerated in the past."

"There is no inflation overshooting logic in the strategy."

"Short-term uncertainty remains but recovery is not at stake."

"Increase in eurozone inflation is eminently temporary."

"More room for manoeuvre on monetary policy than previously."

"ECB must be very careful when deciding to remove support measures."

Market reaction

These comments failed to help the shared currency find demand and the EUR/USD pair was last seen losing 0.42% on a daily basis at 1.1810.