Nowotny: Most important effect of ECB policy has been to prevent deflation - Livesquawk

Ewals Nowotny hitting the wires

• The most important effect of ECB policy has been to prevent deflation and a downward economic spiral
• There are limits to monetary policy
• The low real interest rate effect is not now

I predict that if oil prices remain at these levels or higher over the next 6 months, inflation will rise and the ECB will give themselves a nice big pat on the back.