Trigger for monetary policy action is not there

European Central Bank (ECB) chief economist Philip Lane said on Monday that there is an early stage of an energy shock in the eurozone and added that the trigger for a monetary policy is not there, as reported by Reuters.

“We need to be much less trigger happy, we need to wait for data,” Lane further noted. “The medium-term inflation dynamic is too slow, not too fast.”

Regarding the policy outlook, Lane explained that the ECB is in a recalibration mode and is not remotely in condition to taper.

Market reaction

The shared currency seems to be weakening modestly against its major rivals following these comments. The EUR/USD pair was last seen posting small daily losses at 1.1562.