Comments by ECB governing council member, Olli Rehn

  • Euro area inflation rate remains below the target level for price stability
  • Monetary policy stance remains acommodative
  • That supports our pursuit of price stability
  • Also fosters conditions that are favourable to growth and employment
  • Outlook remains more or less unchanged compared to September ECB staff macroeconomic projections, owing to global economic uncertainties

He's not telling us anything we don't already know but at least he's giving a more candid and realistic overview about the euro area economic outlook. As mentioned before, it's still too early to be talking about an imminent recovery in global economic conditions.

As for euro area inflation, price pressures remain somewhat subdued but at least there is an uptick in inflation expectations - or at least some stabilisation - recently. That said, it remains far away from where the ECB hopes it would be:

EUR 5Y inflation swap