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Commenting on the European Central Bank’s (ECB) monetary policy decisions,  ECB  chief economist Philip Lane said that tiering was designed to protect credit transmission rather than bank earnings or any particular class of depositors.

“Under the new tiering system, trading between banks can be anticipated but that is a minor issue that will not impact pass-through of monetary policy,” Lane explained.  

Regarding the euro area’s economic outlook, “low unemployment with weak inflation is uncharted territory,  but this means central banks should keep accommodation in place,” Lane said.

The EUR/USD pair ignored these comments and was last seen trading at 1.0935, adding 0.13% on the day.