Economics
Praet Plays Down Draghi's Inflation Comments; Euro Whipsaws
- President Draghi had cited ‘relatively vigorous’ core prices
- ECB chief economist still sees risk of a ‘growth accident’
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European Central Bank policy maker Peter Praet said he doesn’t believe President Mario Draghi intended to send a new signal when he said the pickup in underlying euro-area inflation is “relatively vigorous.”
The euro slid after Praet, the ECB’s chief economist, made the remarks in London on Tuesday. The single currency jumped the previous day when Draghi spoke at the European Parliament, and investors bet on a faster pace of interest-rate hikes over the next two years.