- European area pace of recovery subdued, uneven and fragile
- Monetary policy accompanies reform process
- Outlook for nascent recovery
- Inflation expectations are firmly anchored (where? Port Inflation or Port deflation?)
- Credit dynamics remain weak
- Monetary policy has to be supportive
- Countries must continue structural reforms and continue on banking union
- Inflation will stay subdued in medium term
- ECB has committed to low rates for extended period, has adopted explicit communication on rates
- Forward guidance doesn’t mean ECB is at lower bounds, has explicit easing bias
There we go again. He keeps pumping the rhetoric on risks to the euro area and at easing and yet the market takes no notice. If they cut rates at the next ECB meeting don’t come moaning to us that you weren’t warned.
