ECB's Herodotou says forex rate not targeted, but inflation impact is
European Central Bank (ECB) headquarters building is seen during sunset in Frankfurt, Germany, January 5, 2022. REUTERS/Kai Pfaffenbach
Register now for FREE unlimited access to Reuters.com
ATHENS, July 7 (Reuters) - The European Central Bank does not target exchange rates but does take into account the effect they have on inflation, Cypriot policymaker Constantinos Herodotou said on Thursday.
"We don’t target the exchange rate as a matter of policy. What we do take into account is the effect (of) the exchange rate into inflation," Herodotou told a conference in Athens.
"The big majority of the inflation increase is primarily energy related, but not so much exchange rate related."
Herodotou also said inflationary expectations had not deanchored.
Register now for FREE unlimited access to Reuters.com
Reporting by Balazs Koranyi
Writing by Michele Kambas
Editing by Peter Graff
Our Standards: The Thomson Reuters Trust Principles.