The post Monetary policy should remains steady unless there is large deviation appeared on BitcoinEthereumNews.com. European Central Bank (ECB) executive board member and Chief Economist Philip Lane said during the European trading session that monetary policy adjustments are required only if there is a large and persistent deviation in economic data. Additional remarks It would be counterproductive to seek to respond to near-term deviations that are solidly expected to be transitory. A sufficiently large and persistent deviation from the target requires a monetary policy response, regardless of its origin. Market reaction The comments from ECB’s Lane appears to insignificant on the Euro’s (EUR) price. The EUR/USD pair has been trading firmly since the opening amid weakness in the US Dollar. At the press time, the EUR/USD pair trades 0.3% higher to near 1.1660. 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. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets – usually government or corporate bonds – from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used… The post Monetary policy should remains steady unless there is large deviation appeared on BitcoinEthereumNews.com. European Central Bank (ECB) executive board member and Chief Economist Philip Lane said during the European trading session that monetary policy adjustments are required only if there is a large and persistent deviation in economic data. Additional remarks It would be counterproductive to seek to respond to near-term deviations that are solidly expected to be transitory. A sufficiently large and persistent deviation from the target requires a monetary policy response, regardless of its origin. Market reaction The comments from ECB’s Lane appears to insignificant on the Euro’s (EUR) price. The EUR/USD pair has been trading firmly since the opening amid weakness in the US Dollar. At the press time, the EUR/USD pair trades 0.3% higher to near 1.1660. 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. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets – usually government or corporate bonds – from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used…