Weekend comments from members of the European Central Bank Board of Governors and Governor of the Bank of Italy Ignazio Visco. said in an interview with Bloomberg Television.
Visco said the ECB would raise interest rates just enough to bring inflation back to 2%, and said it was impossible to predict what the final interest rate would be.
- “It really depends on the data, so I don’t think you can tell us what the final rate will be, whether it’s 3.5%, 3.25% or even 3.75%.”
- “Our goal is to bring inflation back to 2% in the medium term. If it needs to be more restrictive, we will be more restrictive.”
Visco attended a meeting of a group of 20 finance ministers and central bankers in Bangalore, India.
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A reasonable comment. It’s hard to argue with central bank officials looking at data and making decisions. Relying on flawed predictions rather than data creates more problems.
The ECB deposit rate is 2.5%.
EUR/USD is little changed from late Friday levels
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