⁍ ECB must avoid double counting as it parses economic data, including the euro’s exchange rate.

---

⁍ Mersch: ‘In the current environment of elevated uncertainty the ECB Governing Council will assess incoming information very carefully

– The European Central Bank is expected to cut interest rates for the first time in more than a decade next week in an effort to fight off a debt crisis in Greece, reports the Wall Street Journal. The bank’s governing council is also expected to announce a bond-buying stimulus program to keep the economy from slipping back into recession. The euro hit a 2-year low against the dollar after the announcement, though it has since recovered some ground. Reuters notes that ECB board member Yves Mersch said the bank must avoid “double counting information” as it weighs economic data, including the euro’s exchange rate. “Looking ahead, in the current environment of elevated uncertainty the ECB Governing Council will assess incoming information very carefully, including developments in the exchange rate, while ensuring that this incoming information is only accounted for once in our assessment,” he said.