Comments by ECB's Coeure
- Marked fall in inflation risk premium suggests that investors assign only a small probability to inflation turning out to be higher than expected
He's trying to put a more positive spin on things after the key market gauge of Eurozone long-term inflation expectations fell to its lowest level since September 2016 yesterday:
It's basically a sign that markets are growing less confident that the ECB will be able to reach its inflation target and be able to raise rates next year. Next Monday's Eurozone inflation report will be the next key data point to look out for in potentially skewing expectations here.
