ECB's Panetta: Inflation remains well below our aim in our projection horizon

"Inflation remains well below our aim in our projection horizon and, according to survey measures of inflation expectations, even beyond it," European Central Bank (ECB) Executive Board Member Fabio Panetta said on Monday, as reported by Reuters.

Additional takeaways

"The ECB has already asserted its monetary autonomy and will continue to use it to bring inflation back to our aim of 2%."

"We should avoid withdrawing policy support – either deliberately or by tolerating adverse spillovers – until the output gap is closed and we see inflation sustainably back at 2%."

"We will have to maintain very favourable financing conditions well beyond the end of the pandemic period."

"Globalisation does not seem to impose an insurmountable constraint on the ECB’s monetary policy."

Market reaction

The EUR/USD pair is edging lower after these comments and was last seen losing 0.15% on the day at 1.2080.