Bostjan Vasle, a member of the European Central Bank (ECB) Governing Council, stated on Thursday that the bank should proceed toward a neutral monetary policy at a measured pace. He emphasized that there is currently no pressing need to consider lowering interest rates or deviating from neutral.
Vasle noted that while inflation remains a challenge, recent economic data has shown signs of improvement. He indicated that as the ECB approaches a neutral stance, it may be necessary to adjust its communication accordingly.
Despite ongoing uncertainties, Vasle maintained that a soft landing paired with economic recovery remains the baseline scenario. However, he acknowledged that recent data also highlights potential risks that could hinder anticipated growth improvements.
In response to Vasle’s remarks, the EUR/USD exchange rate remained stable, trading at 1.0791, reflecting a slight increase of 0.10% for the day.
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