ECB Executive Board member Piero Cipollone clarifies the ECB's stance on the euro's exchange rate, emphasizing that it is not a target but an essential factor in their inflation projections. In an interview with Cyprus News Agency, Cipollone stated, 'We do not have a specific target for the exchange rate.' However, he added that the ECB considers the exchange rate in its forecasts and will reassess its impact in the upcoming forecast round. This clarification comes as the euro's recent strength has returned to levels observed in previous months. The interview primarily focused on the digital euro, with Cipollone highlighting the ECB's ongoing efforts in this area. This statement is particularly relevant given the recent market dynamics, where the EUR/USD experienced a decline for the second consecutive week, despite a strong rebound from a key technical zone. This phenomenon underscores the complex relationship between exchange rates, inflation, and policy decisions made by central banks.
