ECB's Coeure: Monetary policy can not be used as insurance against labour market risks

Author: Mike Paterson | Category: Central Banks

ECB executive board member Coeure put on the wires 19 May

  • mon pol can not "run the economy hot" as insurance against labour market risks once inflation stabilises
  • structural unemployment has not yet materialised meaningfully in EZ

"Should we reach a point where the path of inflation is expected to be self sustaining but long term unemployment remains high, there should be no doubt as to how I would decide regarding our policy stance"

  • has doubts about allowing inflation to overshoot 2% target
  • current recovery has, by and large, been driven by mon pol

Coeure is speaking at an event in Geneva

Yesterday he had this to say in an interview with Reuters.

EURUSD still underpinned at 1.1168 with EUGBP rising to 0.8588. EURJPY steady at 124.50