ECB Praet: Baseline scenario for future inflation remains contingent on easy money

Author: Greg Michalowski | Category: Central Banks

ECB Executive board member Peter Praet speaking

  • The state of monetary policy transmission can be expected to influence the monetary policy stance
  • baseline scenario for future inflation remains contingent on easy financing conditions
  • Measured inflation rates are exceedingly volatile and metrics of underlying price pressures remain weak
  • Strength and resilience of the recovery tends to foster our confidence that reflationary forces will gradually take inflation to target
  • Downside risks primarily global factors, exchange rate
  • Investment outlook is positive
  • Risks to growth outlook are broadly balanced
  • ECB to recalibrate tools to deliver sustained inflation
Cautiously optimistic.