European Central Bank governing council member and Slovenian central bank head Boštjan Vasle on Wednesday said that the bank must provide sufficient room for maneuver in the event of a further worsening of the pandemic and economic situations. However, added Vasle, the bank must also provide for maneuver in the event that inflationary pressures are more prolonged than expected. 

Market Reaction

ECB's Vasle comments do not add anything new to the policy debate and EUR/USD has not reaction. For now, the pair is consolidating just above session lows in the 1.1210s. The most notable recent comments from an ECB policymaker were from influential German economist Isabel Schnabel earlier in the week, who said that given inflationary pressures, the bank should end the PEPP in March.