• sees no deflation risks
  • ECB has necessary tools for further monetary policy measures
  • ECB could buy govt bonds but this would have immense political, legal and economic challenges
  • buying pvt debt instruments could be problematic as would shift risk to tax payers
  • risk of negative interest rates increasing borrowing costs
  • central banks should not fall into the trap of trying to do too much

Essentially more of the same from executive board member Mersch, but rightly remaining cautious.

Euro little changed


  • monetary policy can only buy time
  • if the time is not used then monetary policy can not help