Free Trial

MNI BRIEF: Spillover Risk From U.S. Prices - ECB Accounts

(MNI) ROME

A sustained exchange rate effect would likely slow disinflation, ECB accounts show.

European Central Bank officials considered that spillovers from higher-than-expected U.S. inflation “through a sustained exchange rate effect would likely slow the disinflationary process in the euro area,” accounts of the April policy meeting showed on Friday.

Members agreed that the depreciation of the euro following the release of U.S. inflation March data “pointed to a close monitoring of the impact of the exchange rate on euro area inflation,” the accounts showed. (See MNI SOURCES: ECB Wary Of Any "Significant Divergence" With Fed)

Keep reading...Show less
112 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

European Central Bank officials considered that spillovers from higher-than-expected U.S. inflation “through a sustained exchange rate effect would likely slow the disinflationary process in the euro area,” accounts of the April policy meeting showed on Friday.

Members agreed that the depreciation of the euro following the release of U.S. inflation March data “pointed to a close monitoring of the impact of the exchange rate on euro area inflation,” the accounts showed. (See MNI SOURCES: ECB Wary Of Any "Significant Divergence" With Fed)

Keep reading...Show less