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ECB's Panetta says should stay pragmatic and data-driven in setting coverage fee

  • 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
  • Full transcript (may be gated)

Just some token remarks there by Panetta as he discusses more about the neutral rate, with the ECB supposedly gradually approaching that. As a reminder, policymakers themselves don’t have a firm conviction or view of what that level is for the time being.

This article was written by Justin Low at www.forexlive.com.

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