‘reviving euro zone inflation still long way off’
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

ECB President Mario Draghi

‘Reviving euro zone inflation still long way off’

Arab Today, arab today

Arab Today, arab today ‘Reviving euro zone inflation still long way off’

European Central Bank
Frankfurt - Arab Today

The euro zone economy still needs a long period of easy monetary policy and a shift in message that induced a market selloff last week was merely a nuanced change to reflect better growth, said Peter Praet, European Central Bank’s (ECB) chief economist.
The ECB still needs to be patient and persistent with stimulus as inflation is a “long way” from getting back to the ECB’s 2 percent target, Praet told Belgian newspaper De Standaard, likely hoping to temper expectations of an imminent policy shift.
ECB President Mario Draghi stirred markets last week when he argued that better growth in itself would provide increased support, allowing the ECB to curb its own stimulus to keep the overall level of accommodation broadly unchanged.
That message was taken as a signal that the ECB could announce as soon as September a reduction in asset buys, already running for over two years with the aim of reviving spending, growth and eventually inflation.
“I see it more as an evolution in our communications,” Praet, a key Draghi ally said, according to an interview published on Saturday. “The tone was rather optimistic regarding growth, and rightly so.”
“Now indeed inflation is picking up, but that is a process that is a long way from completion,” Praet added. “The process of reflation is a long one that remains highly dependent on accommodative monetary policy.”
The ECB will decide in September or October whether to wind down its 2.3 trillion euro bond buying scheme from next year or extend the buys, having to resolve an apparent contradiction between accelerating growth and subdued inflation.
Last week, euro zone bond yields jumped as much as 12-basis points as minutes from the ECB’s latest meeting showed policymakers are open to a further step toward reducing monetary stimulus.
They were thrust higher after data showed the US economy added more jobs than expected in June and employers increased hours for workers, signs of labor market strength.
“We need to be patient because inflation convergence needs more time,” Praet said. “And we need to be persistent because our baseline for future inflation remains crucially contingent on very easy financing conditions.”
“As the economic prospects brighten, higher expected returns on business investment will make borrowing conditions increasingly attractive,” Praet said. “This will reinforce accommodation.”
According to Bloomberg, economic data on Friday highlighted the strength of the currency bloc’s upturn, with industrial production beating expectations in Germany, France and Spain — three of the four largest economies. Still, the ECB does not foresee consumer-price growth returning to its goal of just below 2 percent on a sustained basis until at least late 2019.

Source: Arab News

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

‘reviving euro zone inflation still long way off’ ‘reviving euro zone inflation still long way off’

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

‘reviving euro zone inflation still long way off’ ‘reviving euro zone inflation still long way off’

 



GMT 10:06 2012 Saturday ,28 July

Querrey advances at ATP LA Open

GMT 21:15 2017 Thursday ,01 June

Trump condemns deadly Kabul explosion

GMT 02:15 2017 Thursday ,24 August

Is your country on the Qatar free entry list of 80?

GMT 19:48 2016 Monday ,03 October

Controversial boxing champ Tyson Fury retires

GMT 08:20 2015 Tuesday ,08 December

PC market woes show no sign of easing

GMT 17:27 2017 Tuesday ,25 April

20 Yemeni soldiers killed, injured in explosion

GMT 11:52 2017 Saturday ,30 December

OIC condemns Mar Mina Church attack

GMT 00:03 2017 Saturday ,25 March

Arab Meeting to Examine Anti-Corruption Methods

GMT 13:12 2017 Thursday ,20 April

Deputy premier meets Arab League chief

GMT 14:13 2014 Friday ,10 January

Opel Astra GTC

GMT 18:27 2016 Tuesday ,02 August

Turkish Foreign Minister arrives in Islamabad

GMT 11:27 2016 Tuesday ,13 December

Saudi woman arrested for challenging social norms

GMT 19:56 2017 Thursday ,09 March

Qatar Pavilion Opens at ITB Berlin

GMT 23:34 2013 Thursday ,07 February

New BMW 3 Series Gran Turismo

GMT 12:57 2017 Friday ,13 October

JPMorgan open to digital money if regulated

GMT 04:38 2017 Friday ,10 March

ADNOC opens fifth ADNOC Xpress

GMT 10:30 2017 Friday ,10 November

BDF military contingent honoured

GMT 17:37 2017 Tuesday ,24 January

China jails former Sinopec president for graft

GMT 19:34 2017 Sunday ,14 May

Austria centre-right calls for snap elections

GMT 14:54 2014 Saturday ,29 November

Wall cladding, wallpaper, fabric and wood!
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday