The European Central Bank (ECB) Governing Council member Madis Muller is making some comments on the withdrawal of the central bank’s Pandemic Emergency Purchase Program (PEPP), noting that the pandemic stimulus could end next spring.
Key quotes
“The ECB needs to watch consumer prices as persistently high inflation could require a reduction of stimulus.”
“The bank's focus should be on whether inflation leads to an acceleration of wage growth that could drive the pace of price increases above 2% in the longer term.”
"If this were to happen, the central bank would not be able to continue its policy of large bond purchases and negative interest rates for long.”
EUR/USD reaction
Despite somewhat hawkish comments from the policymakers, EUR/USD keeps meandering near-daily lows of 1.1652, down 0.23% on the day.