The ECB short-timer is speaking at the European Parliament

  • ECB’s primary aim is price stability
  • Hasn’t been easy to anchor inflation expectations
  • Medium-term inflation expectations remain stable
  • Separation of standard and non-standard measures allows ECB to keep price stability even in deep crisis
  • Nothing I say has bearing on next policy meeting
  • Risks to economic growth outlook to the downside, risks to inflation broadly balanced
  • Moderate growth seen in second half
  • Liquidity ample but it may be being hoarded