ECB's Praet: Metrics of underlying price pressures continue to be subdued
|Key highlights from the remarks by Peter Praet, Member of the Executive Board of the ECB, at the Fixed Income Market Colloquium, Rome, 4 July 2017:
- Over the past three years one could say that we have been effective in shielding short-to-medium term interest rates from shocks that could have weakened the stimulus that the euro area needed to consolidate the recovery.
- As the economic prospects brighten, higher expected returns on business investment will make borrowing conditions increasingly attractive.
- We need to be patient, because inflation convergence needs more time to show through convincingly in the data.
- The euro area’s economic environment is improving, and the fat negative tail to inflation expectations, which was so visible at the start of our asset purchase programme, has virtually disappeared.
- This strengthens our confidence that headline inflation will gradually move towards the Governing Council’s objective.
- Measured inflation remains exceedingly volatile and metrics of underlying price pressures continue to be subdued
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.