ECB will watch impact of strengthening euro on prices - Draghi
FRANKFURT Feb 7 (Reuters) - The European Central Bank will watch to see whether the appreciating euro will change its inflation projections, ECB President Mario Draghi said on Thursday.
Noting that the currency's recent strengthening on foreign exchange markets was a sign of renewed confidence in the euro, Draghi told a news conference:
"We will certainly want to see whether the appreciation, if sustained, will alter our risk assessment as far as price stability is concerned."
Contained inflation has allowed the ECB to keep interest rates low. The bank earlier left its main interest rate unchanged at 0.75 percent.
French President Francois Hollande said on Tuesday the euro zone must develop an exchange rate policy to protect the currency from "irrational movements". The euro has risen this year to a 14-month peak against the dollar.
A stronger euro holds down costs of imported goods but makes exporting harder.
- Nurse defies Ebola quarantine with bike ride; negotiations fail |
- Japan shares soar, yen skids after BOJ stuns with new easing steps
- Suspect in Pennsylvania police ambush captured after seven-week manhunt
- Oil price declines have small-cap shale investors scrambling
- China says nets 180 graft suspects in overseas manhunt