ECB Insight: Exchange Rate Played No Role Thursday, Econostream Understands
10 June 2022
By David Barwick – FRANKFURT (Econostream) – Absent from both European Central Bank President Christine Lagarde’s monetary policy statement and the entire subsequent press conference on Thursday was any mention of exchange rate developments.
As Econostream understands, the euro’s foreign exchange standing played a similarly insignificant role during the preceding discussions of the Governing Council.
‘We are dealing with interest rates, not the exchange rate’, an ECB insider told Econostream. ‘That’s important. If you try to put other objectives into your decision-making, you get lost.’
‘We were discussing from the perspective of inflation, not the exchange rate, not employment’, he added.