Constancio Says ECB Only Looks at Euro for Inflation Outlook

European Central Bank Vice President Vitor Constancio said the bank only takes the euro’s exchange rate into account when assessing the outlook for inflation.

“The only consideration that we do about the exchange rate is to see what is the effect it has on the prospects for future inflation, that’s the only consideration,” Constancio told reporters in Helsinki today. “The euro is a floating currency and we respect both the G-7 and G-20 principles” that a “floating currency should be left to the market and this means that the exchange rate as such for floating currencies should not be a target of policies,” he said.

Constancio also said that while “there is no currency war going on,” such an event “has to be avoided.”

To contact the reporters on this story: Niklas Magnusson in Stockholm at nmagnusson1@bloomberg.net; Kati Pohjanpalo in Helsinki at kpohjanpalo@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net

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