ECB Member Confirms Monetary Policy Will Remain Loose

The European Central Bank’s monetary policy will stay loose for an extended period of time as Europe’s recovery lags behind the U.S., the vice-president of the European Central Bank told CNBC on Friday.
“The recovery in Europe is lagging behind what is happening in the U.S.,which means there is justification for a longer period of time than in the U.S.for monetary policy to stay accommodative,” Vitor Constancio told CNBC on Friday. “Meaning rates [will remain] at the current or lower level for an extended period of time but we cannot put a date on that.”

The ECB’s unprecedented step to provide forward guidance on interest rates last week had been successful in stabilizing financial markets, Constancio added, but it would be unadvisable to make specific comments on the time frame for rate moves, he told CNBC in Singapore.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza