European Central Bank (ECB) policymaker, Pablo Hernandez de Cos, said on Monday, “future monetary policy decisions will depend on three factors, such as new economic and financial data and core inflation.”

Additional comments

“Future monetary policy decisions will depend on how various sources of risks, including those recently experienced in financial markets crystallize.”

“Monetary policy decisions will also take into account intensity of monetary policy transmission.”

“Tensions in financial markets have generated a further tightening of financial conditions, affecting the outlook for economic activity and inflation.“

“All those factors have to be taken into account at our next meetings.”

“Over the medium term, the main risk for inflation comes from a persistent rise in price expectations above our inflation target.”

“On the contrary, the disinflation process could be accelerated further if the high tensions in financial markets were to be prolonged.”

“ECB, national authorities stand ready to act as and when necessary to maintain financial stability in euro area, as a necessary prerequisite to ensure price stability goal.”