ECB’s Pereira: No second-round inflation effects at present
European Central Bank (ECB) official and Governor of the Bank of Portugal Santos Pereira said during the European trading session has ruled out fears of second-round inflation effects. Pereira advised that France should pursue fiscal prudence.
European Central Bank governor Santos Pereira stated during the European trading session that there are currently no indications of second-round inflation effects. He advised France to exercise fiscal prudence. French bonds experienced a significant sell-off recently due to heightened fiscal concerns. The current levels of inflation and core inflation are considerably lower than those observed during the 2022 energy shock.
No signs of de-anchoring inflation expectations have been observed in other goods prices. France is urged to reduce its deficit and debt, implement reforms, and pursue fiscal prudence. The Euro (EUR) did not exhibit any responsive action following Pereira's remarks. As of now, the EUR/USD pair is down 0.62% to approximately 1.1190.
The European Central Bank operates from Frankfurt, Germany, and is responsible for the Eurozone's monetary policy.
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