ECB's Peter Praet with a speech in Brussels - 29 January 2018
- Once we have established there is a sustained adjustment in the path of inflation, transition to normalisation will begin
- Once governing council judges the criterias have been met, net asset purchases will expire
- Policy will be set data-dependent, and time consistent
- Domestic price pressures remain subdued
- Ample degree of monetary accommodation is still needed at present
- There is still some distance away from meeting those inflation criterias
His full speech can be found here in the media release.
He also mentions that holding policy rates at their current levels beyond their QE program will help keep the yield curve in check.
Well, he talks about normalisation once inflation looks sustainable then takes it back by saying that there is still a long way to go for it to happen. That's the crux of it really.
Meawhile, EUR/USD is now up to 1.2422 as the dollar starts to slip a little against the euro and the yen in particular. EUR/CHF is up to 1.1631 now, while EUR/GBP is still pivoting around 0.8800.
