ECB's Villeroy: Yields and spreads do matter even if we don’t target fixed levels

"We will not allow adverse market dynamics to lead to unjustified interest rate increases in some countries," ECB Governing Council member François Villeroy de Galhau said on Thursday.

Additional takeaways

"Yields and spreads do matter, even if we don’t target fixed levels."

"We are and will remain flexible in implementing the pandemic emergency purchase programme."

"The Eurosystem should be guided more by market dynamics and liquidity conditions than predetermined volumes of purchases."

Market reaction

The EUR/USD pair's reaction to these comments was largely muted. As of writing, the pair was down 0.2% on the day at 1.0795.