ECB’s Praet: Inflation expectations are increasingly consistent with our aim

Below are some of the key highlights from the ECB Executive Board Member Peter Praet's speech at the Congress of Actuaries in Berlin:

   •  Equilibrium real interest rate has declined to very low levels; precise level is very uncertain.
   •  Any decision concerning termination or extension of net purchases will hinge on the ultimate judgment of the governing council.
   •  Post-QE forward guidance on policy rates will then have to be further specified.
   •  There is strong evidence that labour market tightness is translating into a stronger pick-up in wage growth.
   •  The underlying strength of the Euro-zone economy persists.
   •  Signals showing a convergence of inflation towards our target have been improving.