Small inflation deviations are no reason to panic.Euro appreciation could undermine European competitiveness.Eurozone economy is a delicate balance as a result of countervailing forces.There are downside risks but no one is sure they will materialise, so we have to wait and see.If December comes and we remain in balance, then we won’t move.If something significant and obvious happens before October, then we don’t need a forecast to make a decision.We are not committed one way or the other.
He’s just reaffirming the ECB stance of a hard pause and that small deviations from the 2% target on both sides won’t automatically call for rate adjustments.
This article was written by Giuseppe Dellamotta at investinglive.com.