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ECB Officials Expressed Concern Over Risk of Euro Overshoot

  • Central bank publishes account of July 19-20 policy meeting
  • Governing Council discussed changes to forward guidance
Bloomberg business news

European Central Bank officials expressed concern that the euro may strengthen beyond what is justified by an improving economy. Bloomberg's Paul Gordon reports on 'Bloomberg Daybreak: Americas.' (Source: Bloomberg)

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European Central Bank officials sounded the alarm at the threat of an even stronger euro, as the currency’s gains to the highest since they unveiled quantitative easing in 2015 cloud efforts to revive inflation.

“While it was remarked that the appreciation of the euro to date could be seen in part as reflecting changes in relative fundamentals in the euro area vis-a-vis the rest of the world, concerns were expressed about the risk of the exchange-rate overshooting in the future,” an account of the July 19-20 policy meeting published by the ECB showed on Thursday.