ECB’s Panetta: Monetary policy will remain tight even after several interest rate cuts

• Monetary easing can be expected in the coming months if the data confirms our expectations
• You should avoid the policy becoming too restrictive
• This could push inflation below the ECB’s symmetric target
• Inflation is expected to decline further in the next few quarters
• The ECB will take into account the Fed’s policy, but will not be bound by it

As you would expect from the ECB at this moment. But I think we could see almost similar statements after next week’s rate cut as well.

This article was written by Justin Lu at www.forexlive.com.