Headlines on BBG. Speaks in Frankfurt
He adds:
- Low-inflation in the euro area also depends on economic slack, high employment.
- Growth and price stability are key to financial stability
- Low nominal rates may hurt financial institutions but they are necessary
- Risk that real rates will rise if inflation expectations fall
- Indicators do not point to rising vulnerabilities
- Financial cycle still negative in aggregate in most countries
- Current low rates reflect the slack in the economy; not a bizarre choice
- Less accommodative policy would harm everyone
- Cannot avoid intervening if others don't intervene
Back on February 19th the Italian central bank governor said "the ECB would need to act preemptively if inflation expectations were to fall too far, but the situation is under control for now" He seems to be a bit more concerned now.
The EURUSD is little changed, trading at 1.1372. The low in the current hour extended 1.1357 (which is the low for the day).
