ECB's Coeure: Indications on global economy are very bleak
ECB governing council member, Benoit Coeure, speaks to the Financial Times
- Warns of bleak indications about the health of the global economy
- Central banks should never ignore market signals
- But also shouldn't follow them blindly either
- Markets are sending a "quite alarming" message at odds with benign data
- Capacity for policymakers to deal with shocks today is less than it was previously
As evident from their meeting at the start of the month, the ECB has certainly grown more cautious and is increasingly shifting towards a more dovish stance. Coeure's remarks here adds to that but the real weight will be felt when the ECB starts addressing the issue of plunging inflation expectations with more vigour.
They're playing it down for now but there's no doubt that they are growing more concerned by the day if things continue down this path over the next few weeks. The full interview with Coeure can be found here, if you're interested (may be gated).