ECB’s Dolenc says central bank may not have to do as much if markets tighten

European Central Bank (ECB) Governing Council member Primoz Dolenc said on Wednesday that a tightening in financial conditions may limit the need for central bank monetary policy action.

Key quotes

We’ve seen quite a bit of repricing in the markets.

If  there is a tightening on the financial market, then maybe we don’t have to do as much as we would otherwise.

ECB is approaching the restrictive area — probably we are still not there, but we are on the limits.

Market reaction

At the time of writing, the EUR/USD pair is up 0.45% on the day at 1.1207.