ECB price stability concerns rise as euro strengthens

Source: Bloomberg
© Scanpix/FP
On April 12, Mario Draghi announced that increasing euro exchange rate requires more monetary stimulus in the Eurozone to keep prices stable and avoid deflation. While inflation still holds at very low level of 0.5%, the euro-dollar exchange rate surged 6% during last month. As expected, it can shake price stability, as imports becomes cheaper, but exports more expensive.

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