- Eurozone not in deflation but risks can;t be ignored
- Large scale bond buying is needed if risks to price stability in euro area are confirmed
- Serious risk that too low inflation expectations become rooted in medium term market
- Deflation could have very serious consequences for high debt countries like Italy
- Prices will likely fall in coming months
ECB and Italian central bank head Ignazio Visco not hiding his bias for QE. The problem with Europe is summed up in the bolded comment. They love waiting until it’s too late and they’re up to their neck in it.
Adds that Italian banks took €57bn out of potential €75bn in in TLTRO auctions
