ECB will not be influenced by the markets – Nowotny

FXStreet (Mumbai) - The ECB member Edwald Nowotny defended the last week’s decision to cut deposit rates, but avoid increasing the size of the QE and said the central bank would not let the market expectations to influence its decision.

The financial markets were heavily short on the EUR ahead of the last week’s ECB decision, since the bank was widely expected to announce an increase in the size of its QE program. However, the bank merely extended the maturity to end-March 2017.

Key Quotes

ECB will not let itself be influenced by market

Must watch for side-effects like bubbles

Eurozone significantly under inflation target