ECB VP Vitor Constancio speaking in Frankfurt
- High unemployment is destabilising the economy
- Lowe inflation rates reflect sluggish recovery
- Main policy rates will stay low for a long period of time to bring inflation closer to target
- Monetary policy can't affect equilibrium interest rate
- ECB stimulus aims to incentivise risk taking
- ECB doesn't see any general signs of asset overvaluation
- Further monetary policy options are available if needed
- Concerns about emerging markets signal downside risks to inflation
I'm not sure the comment on risk taking is apt. Isn't that what got us into this mess in the first place?
