ECB's Praet says deflation risks have disappeared

Author: Eamonn Sheridan | Category: Central Banks

European Central Bank chief economist

  • Euro area recovery remains solid, broad-based and resilient, the economy has yet to make sufficient progress towards governing council's aim
  • Says in more normal market conditions, the market become "more patient"
  • May be better able to evaluate the stimulus that can be expected to come from a purchase plan that is to be executed over a more extended time interval
  • Monetary policy impulse that is still necessary to secure a sustained adjustment in the path of inflation in a way that is consistent with our monetary policy aim
  • Says in more normal market conditions investors may become "more patient", or, in other words, better able to evaluate the stimulus
  • Says we are still some distance away from a sustained adjustment

Headlines via Reuters

Careful words from Praet, as usual. The ECB is on the path to adjustment, normalisation - but there is no hurry according to the remarks here. No surprise.