European Central Bank (ECB) policymaker Francois Villeroy de Galhau said on Tuesday that they have "significant leeway" to lower rates before exiting the restrictive policy, per Reuters.
Key takeaways
"We are monitoring actual inflation data, in particular for services, but monthly figures will be volatile due to base effects on energy."
"This noise is not very meaningful, and hence we are still more outlook-driven and will look still more closely at the inflation forecasts."
"We remain confident that barring an external shock, we will bring inflation to 2% target by next year, we will reach it with a soft rather than hard landing."
Market reaction
These comments don't seem to be having a significant impact on the Euro's valuation. At the time of press, the EUR/USD pair was virtually unchanged on the day at 1.0763.
