ECB's Schnabel: ECB could adjust policy operations more gradually

The European Central Bank (ECB) could adjust its monetary policy operations more gradually in line with the sustainability considerations, Isabel Schnabel, Member of the Executive Board of the ECB, said on Monday, per Reuters.

Additional takeaways

"It seems appropriate to replace the market neutrality principle with a market efficiency principle."

"A tilting of the ECB’s purchases could, in principle, reduce potential mispricing."

"Tilting strategies could be performed at the level of sectors, firms or bonds."

Market reaction

The EUR/USD pair edged modestly higher after these comments and was last seen gaining 0.18% on the day at 1.2128.