The ECB used their Survey of Professional Forecasters (SPF) to watch for early Brexit fallout signs
Early survey showed no major inflation impact
Will be monitoring for further Brexit influences
If there are problems, ECB will use all instruments if needed
Bank equity prices are of some significance for policy makers
- Next job is to address the problem of weak bank profitability
- The problem for banks isn't one of solvency
- NPL's are a problem for bank profitability
I guess he's ignoring the problems at banks like Deutsche Bank.
- Public NPL backstop may be needed in exceptional circumstances (a fair few Germans just choked on their coffees)
