Central bank will not prejudge further movements in the policy rate

European Central Bank (ECB) Vice President Luis de Guindos said on Monday, “central bank will not prejudge further movements in the policy rate.”

Additional quotes

Expect a temporary rebound in inflation in the coming months.

It is likely that euro area economy will remain subdued in the near-term.

There are signs that labour market is beginning to weaken.

Will be in a better position to reassess inflation outlook and required action in December meeting.

Sees general disinflationary process continuing over the medium-term.

Will ensure policy remains sufficiently restrictive for as long as necessary.

Forward guidance is out of fashion.

 Central bank will not prejudge further movements in the policy rate.

Market reaction

EUR/USD is unfazed by the above comments, still holding just below 1.0700, as of writing.