ECB’s Constancio - Eurozone would be in deflation without ECB policies

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    ECB’s Constancio was on the wires stating the Eurozone would have suffered from deflation if it were not for ECB’s ultra easy monetary policy.

    Key quotes

    All policies have limits, especially negative rates

    Urgently need higher growth to normalize inflation

    Wrong and dangerous to start talking down monetary policy

    Naturally, all policies have limits. In the case of the instruments we are now using, this is particularly true of negative interest rates on our deposit facility

    To normalize inflation in the Euro area we urgently need higher growth

    Two thirds of EMU growth due to monetary policy

    Without our policies, inflation would have been a third of a percent negative in 2015 and would have stayed significantly negative throughout 2016

    Net export drag undid growth boost from ECB policy
    For more information, read our latest forex news.

Share This Page

free forex signals