EU’s Gentiloni: ECB’s tighter monetary policy would be ‘a big mistake’

The European Union (EU) Economy Commissioner Paolo Gentiloni reiterated that Euroarea inflation is transitory in a Bloomberg interview, although warned the European Central Bank (ECB) over a premature monetary policy tightening.

Key quotes

“We are monitoring euro-area inflation — we should monitor it very accurately — but without making conclusions too soon”

“I think it would be a big mistake because the mainstream consensus is on the fact that this inflation is still a temporary phenomenon.”

Market reaction

EUR/USD is retreating towards 1.1850, as the US dollar finds its feet after the NFP shocker. At the time of writing, the main currency pair is losing 0.07% on the day, trading 1.1873.