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8/27/2019, 2:17 PM (Source: TeleTrader)
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ECB's De Guindos: Monetary policy is data dependent

European Central Bank Vice President Luis de Guindos said on Tuesday that despite the importance of the market view on the economy, monetary policy is based on economic data. "As we keep stressing, our monetary policy is data dependent, not market dependent: indications from market expectations cannot replace our policy judgement," he added in prepared remarks for the Annual Congress of the European Economic Association in Manchester.

Nevertheless, De Guindos noted that there is a "tight two-way" relationship between central banks and financial markets. "Financial markets send signals to the central bank, which constitute a central input to decision-making. It is important for us to get the market view about where the economy stands, and where it is heading," he explained.

In the final part of his speech, the central banker pointed out that the ECB has been working on its toolkit for communication with the general public.

Breaking the News / JC