by Steve Goldstein
It’s a race to the bottom for central banks. With the U.S. Federal Reserve adopting average inflation targeting, at least in principle, that puts pressure on foreign central banks to make dovish moves if they don’t want their currency to appreciate too much.
The statement from European Central Bank chief economist Philip Lane that the “euro/dollar rate does matter” has, for the moment, helped cap the rise in the shared currency. But expectations are for ECB President Christine Lagarde and her colleagues to build on that remark when the central bank announces its decision on Thursday at 7:45 a.m. Eastern (1:45 p.m. Central European Time), and then has its press conference at 8:30 a.m.