Further comments by ECB member Ewald Nowotny in Vienna
- ECB has set itself the target of an inflation rate of just below 2%
- Says that from his perspective that goal has been achieved
- Whether it is 1.7% or 1.9%, it is within the statistical ambiguity
- The task now is to secure this success permanently
- Important for ECB to seize the opportunity for normalisation as soon as possible
Rising energy prices have surely helped with the cause to inflation, but I reckon he needs to take a look at how the core reading is doing as well - and that will portray a more accurate picture.
It's ironic how much he's trying to talk up the decision made yesterday. If Draghi was the one to be so upbeat during the presser yesterday, you'd expect the euro to take flight instead. And if the inflation target has been achieved, the ambiguity surrounding rate hikes having to wait "through the summer of 2019" just doesn't add up.
