ECB's Schnabel: Uncertainty about future income prospects to prevail for some time

"News on the effectiveness of vaccines provides light at the end of the tunnel,"  Isabel Schnabel, Member of the Executive Board of the European Central Bank, said on Tuesday, as reported by Reuters.

Additional takeaways

"Significant uncertainty about future income prospects can be expected to prevail for some time."

"Fiscal expansion is then indispensable."

"A more elastic use of the medium-erm” notion might be all the more conducive in an environment in which a high degree of prevailing uncertainty."

"By accepting a somewhat slower return of inflation towards the aim and by focusing more on the duration of policy support, central banks may effectively mitigate potential risks to financial stability."

Market reaction

The shared currency paid little to no mind to these comments and the EUR/USD pair was last seen gaining 0.25% on the day at 1.1870.