The post Supports holding interest rates steady in December appeared on BitcoinEthereumNews.com. European Central Bank (ECB) policymaker Peter Kazimir said in the European session on Monday that he doesn’t see any reason of monetary policy adjustment in the policy meeting this month. Additional remarks I see no reason to change rates in the coming months, definitely not in December. FX pass through to prices may not be as strong as expected. Remaining vigilant to upside risks has become more important. Overengineering policy around small inflation deviations would introduce unnecessary policy uncertainty. Market reaction EUR/USD trades flat around 1.1660 as of writing. The impact of ECB Kazimir’s comments appears to be insignificant on the Euro (EUR). 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 it during the Great Financial Crisis in 2009-11, in 2015 when inflation remained stubbornly low,… The post Supports holding interest rates steady in December appeared on BitcoinEthereumNews.com. European Central Bank (ECB) policymaker Peter Kazimir said in the European session on Monday that he doesn’t see any reason of monetary policy adjustment in the policy meeting this month. Additional remarks I see no reason to change rates in the coming months, definitely not in December. FX pass through to prices may not be as strong as expected. Remaining vigilant to upside risks has become more important. Overengineering policy around small inflation deviations would introduce unnecessary policy uncertainty. Market reaction EUR/USD trades flat around 1.1660 as of writing. The impact of ECB Kazimir’s comments appears to be insignificant on the Euro (EUR). 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 it during the Great Financial Crisis in 2009-11, in 2015 when inflation remained stubbornly low,…