9/17, 11:35 AM (Source: TeleTrader)
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Euro's exchange rate important for inflation - ECB's De Guindos

European Central Bank Vice President Luis de Guindos (pictured) stressed on Thursday that the euro's exchange rate represents a "fundamental economic variable" that affects the Eurozone's inflation, though the central bank does not target the euro exchange rate in its policy.

Speaking at a press conference after a meeting of European Union finance ministers in Berlin, the ECB's official said that a "relatively brisk and intense fluctuation in the exchange rate affects inflation expectations and the conditions that determine inflation." According to him, the ECB couldn't be satisfied with its own forecast for a 1.3% inflation rate in 2022 but the euro area is not in danger of facing deflation in the near future.

Earlier today, Eurostat's report showed that the Eurozone's inflation rate stood at -0.2% in August, down from 0.4% recorded in July.

Breaking the News / GA