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The Goldman Sachs analysts offer their take on the European Central Bank’s (ECB) September monetary policy decision and its view on the euro.

Key quotes

“The Governing Council signalled modest concern over the recent appreciation of the Euro as expected, noting in the Introductory Statement that it “will carefully assess incoming information, including developments in the exchange rate, with regard to its implications for the medium-term inflation outlook.”

“But President Lagarde offered no details on potential policy implications, underscoring that the bar for policy rate cuts to stem currency strength is high in light of limited policy room.”