European Central Bank (ECB) policy governing council member and Governor of the Bank of Greece, Yannis Stournaras said during the European trading session on Monday that the closure of the Strait of Hormuz, a critical passage to almost 20% of global energy supply, may have…
condary effects on wages and prices of goods and services. Stournaras added, “It’s necessary to ensure the return of inflation to the medium-term target of 2%.” Market reaction No immediate impact from ECB Stournaras’s comments on the Euro (EUR), which is majorly driving by market sentiment since its opening
As of writing, EUR/USD trades 0.33% higher to near 1.1640. ECB FAQs The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region.
The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa.