ECB policy review unlikely to change treatment of house prices in inflation target – Reuters

The European Central Bank's (ECB) monetary policy review is unlikely to address the issue surrounding the inclusion of house prices while determining the inflation target, Reuters reported on Tuesday, citing four sources familiar with the matter. 

"Sources, all with direct knowledge of the discussion, said that the issue was too complicated to solve quickly and the move made little sense in a mature phase of the business cycle, when house price inflation is expected to ease," Reuters explained.

According to sources, the ECB will instead raise pressure on Eurostat to include house prices in inflation data over longer-term.

EUR/USD reaction

The EUR/USD pair edged lower on these remarks and was last seen trading at 1.0904, erasing 0.05% on a daily basis.