European Central Bank (ECB) official and Governor of the Bank of Portugal Santos Pereira said during the European trading session has ruled out fears of second-round inflation effects. Pereira advised that France should pursue fiscal prudence. Lately, French bonds witnessed massive sell-off amid heightened fiscal concerns. The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa.
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