ECB’s Panetta: Must remain pragmatic and data-driven in setting policy rate

European Central Bank (ECB) policymaker Fabio Panetta said on Wednesday, the central bak “must remain pragmatic and data-driven in setting the policy rate.”

Further comments

ECB should now focus more on inflation expectations than estimated neutral level in setting rates.

As inflation falls and rates near neutral, uncertainty becomes more of a problem.

Market reaction

At the press time, EUR/USD is trading flat at around 1.0780.