ECB says euro’s volatility creating uncertainty across the eurozone
Frankfurt — European Central Bank (ECB) president Mario Draghi said on Thursday that volatility in the euro’s exchange rate was creating uncertainty and could affect the outlook for prices across the eurozone. The euro has gained 13% against the dollar this year, a mixed blessing for the ECB as it reflects a robust economy but caps inflation by making exports less competitive and reducing the cost of imports. "The recent volatility in the exchange rate represents a source of uncertainty that requires monitoring with regards to its possible implications for the medium-term outlook for price stability," Draghi said, talking at a media conference after the ECB’s policy conference. The ECB would lay out its next stimulus moves this autumn, Draghi said, as the bank moves closer to an exit from the era of cheap money. "This autumn we will decide on the calibration of our policy instruments beyond the end of the year, taking into account the expected path of inflation and the financial con...
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