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MNI BRIEF: ECB To Be “More Data Dependent Than Ever” -De Cos

(MNI) LONDON
(MNI) Rome

The European Central Bank should be “more data dependent” than ever in regard its September meeting, one that is “absolutely open”, Bank of Spain’s Governor Pablo Hernandez de Cos said on Thursday in an event about Financial Stability in Madrid.

The situation in the euro area is “more two sided” now, with upside risks for inflation and the possible appearance of second round effects, while new evidence suggests that monetary policy transmission is working, Hernandez de Cos said, speaking alongside Federal Reserve Chair Jay Powell.

The magnitude of the tightening process that will start to show its effects in the economy can mean that the ECB “can also mis-calibrate the non-linear effects” of hikes.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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