ECB Praet: Risks of deflation has largely disappeared

Author: Greg Michalowski | Category: Central Banks

ECB Praet speaking

He adds:
  • ECB must maintain a steady hand continues to be critical to fostering a durable convergence of inflation towards our Mon Policy objective
  • The transmission of our policy Measures To the real economy is clearly demonstrated by a broad-based recovery with solid momentum
  • baseline scenario for inflation going forward remains crucially contingent on very easy financing conditions which, to a large extent, depend on the current accommodative monetary policy stance
  • before looking components of the survey continue to point to growth in the quarters ahead
  • the entire distribution of inflation expectations still needs to shift a fair distance to the right
  • the strength and resilience of the recovery tends to boost our confidence that reflationary forces will gradually support headline inflation returning towards a level that is below but close to 2%
  • The strength and resilience of the recovery tends to boost our confidence that reflationary forces will gradually support headline inflation
  • Owing to energy-related face the facts, headline inflation rates are likely to temporarily decline towards the turn of the year