ECB governing council member and BOF governor Villeroy on the wires 28 Sept
- ECB can keep accommodation while cutting purchase flow
- ECb must be pragmatic in reducing QE intensity
- neg interest rates have their advantages
- EUR strength offset by strong domestic demand
- mon pol is only one factor in euro rise
- we continue to monitor fx rates
Repeated gentle/cautionary tones from Villeroy.
EURUSD steady around 1.1780 , EURGBP 0.8778, EURJPY 132.72 as we wait on German CPI at the top of the hour.
BOF’s Villeroy- QE reduction must be pragmatic