The post Longer term inflation expectations around 2% appeared com. Christine Lagarde, President of the European Central Bank (ECB), explains the ECB’s decision to leave key rates unchanged at the October policy meeting and responds to questions from the press. Street’s ECB Live Coverage here Key quotes “Labour costs to moderate further. Forward-looking wage indicators point to slower wage growth this year. Measures of longer term inflation expectations around 2%. Some growth downside risks have been mitigated. Trade environment is volatile. Outlook for inflation more uncertain than usual. Stronger euro could bring down inflation further than expected. Defence spending boost could increase inflation in medium term.” Euro FAQs The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2. 2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%). The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates or the expectation of higher rates will usually benefit the 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. Eurozone inflation data, measured by the Harmonized Index of Consumer Prices.
