FRANKFURT (MNI) – There are no inflationary dangers in the Eurozone
looking out over the next two years, European Central Bank Executive
Board member Juergen Stark said in a magazine interview published
Wednesday.
Furthermore, monetary analysis confirms this view over the
medium-term and long-term inflation expectations remain “in line with
price stability,” the central banker told German weekly Die Zeit.
Currently, there is a crisis in public finances, not in the euro
itself, Stark asserted.
The central bank’s decision to purchase government bonds is
temporary and not aimed at artificially reducing risk premia, Stark
emphasized.
“Last week we published our new staff projections,” and over the
next two years “there are no inflationary dangers,” he assured. “Our
monetary analysis confirms this also over the medium term,” he added.
Given flat monetary and credit growth, Stark underlined that “the
long-term inflationary expectations are in line with price stability.”
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–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com
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