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ECB Visco – Low inflation also due to economic slack and high unemployment

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    European Central Bank’s (ECB) Visco, while speaking in Frankfurt said that the risk of de-anchored inflation expectation has risen, but low inflation is also due to economic slack and high unemployment.

    Key quotes

    Cannot avoid intervening if others don't intervene

    Current low rates reflect the slack in the economy; not a bizarre choice

    Low nominal rates may hurt financial institutions but they are necessary

    Risk that real rates will rise if inflation expectations fall

    Growth and price stability are key to financial stability
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