The recent rise in real rates may have a negative impact on inflation and growth, European Central Bank (ECB) Governing Council member Pablo Hernandez de Cos said on Wednesday, as reported by Reuters. Additional takeaways “Must avoid a premature rise in nominal rates.” “Drop in real rates would make a greater contribution to recovery given low inflation expectations.” “Need to maintain very favourable financing conditions as the eurozone is a long way from inflation aim.” “Contraction in some eurozone countries or sectors cannot be ruled out if additional health crisis containment measures endure.” “Long-term interest rates developments must also be analysed alongside developments in rest of yield curve.” “Must monitor exchange rates even as upward pressure on euro has eased.” “ECB should set a new inflation target at 2% with symmetry.” Market reaction The EUR/USD pair continues to edge lower following these remarks and was last seen trading at 1.2063, losing 0.21% on a daily basis. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next The Graph adds supports Binance Smart Chain while GRT price faces stiff resistance FX Street 1 year The recent rise in real rates may have a negative impact on inflation and growth, European Central Bank (ECB) Governing Council member Pablo Hernandez de Cos said on Wednesday, as reported by Reuters. Additional takeaways "Must avoid a premature rise in nominal rates." "Drop in real rates would make a greater contribution to recovery given low inflation expectations." "Need to maintain very favourable financing conditions as the eurozone is a long way from inflation aim." "Contraction in some eurozone countries or sectors cannot be ruled out if additional health crisis containment measures endure." "Long-term interest rates developments must also be analysed alongside developments… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
