‘risks to euro zone economy still not balanced’
Last Updated : GMT 05:21:58
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 05:21:58
Arab Today, arab today

‘Risks to euro zone economy still not balanced’

Arab Today, arab today

Arab Today, arab today ‘Risks to euro zone economy still not balanced’

European Central Bank
Dublin - Arab Today

Risks to the euro zone economy are still not balanced and the European Central Bank (ECB) needs to see evidence that wage pressures are feeding into inflation before it shifts its policy stance, Philip Lane, a member of the bank’s governing council said on Friday.
The euro zone economy has been on its best run for a decade and headline inflation has recently met the ECB’s near 2 percent target, fueling calls from some quarters to start winding down the ECB’s €2.3 trillion bond-buying stimulus program.
But Lane told Reuters that there was still some way to go before the central bank can feel comfortable about tweaks to its ultra-easy monetary policy stance.
“There is still downside but the tail risk... is fading and the momentum is back toward balance,” said Lane. “So still below balance but moving toward balance.”
Lane said the “key substantive debate” at the central bank is where inflation is headed over the medium-term given doubts around wage pressures in the bloc.
“We need to see evidence that wage inflation is actually on its way to a level consistent with the target,” said Lane.
“The fact we are seeing reasonably good data on output and unemployment, that is nice, it is helpful, but the core of it is how much of it is going to map into sustainable inflation.
“For underlying inflation to go toward (the) target, a significant part of that will be: Where is wage inflation going?”
The ECB has committed to buying €60 billion worth of bonds every month until December, despite already facing self-imposed limits in certain countries and to keeping rates at ultra-low levels until well after that.
Sources on and close to the bank’s governing council told Reuters last month that the bank may send a small signal about reducing monetary stimulus at its next meeting in June, while others have said autumn may be a more appropriate time.
Asked about the timeline for future monetary policy decisions, Lane said: “Something has to happen in the rest of this year...” The debate around limits to the bond program was “secondary,” he added.
“Central banks have a range of instruments and I do not think that discussion should deflect from the ability of the ECB to deliver its inflation target. We have the range of instruments that can deliver the inflation target,” said Lane, who is Ireland’s central bank governor.
Lane is spearheading an EU proposal to create synthetic “safe” assets backed by euro zone sovereign bonds that would help break the link between banks and governments that exacerbated the financial crisis.
It is designed to provide banks with a safe asset to use as collateral so they can reduce their exposure to their own governments’ debt.
But Germany has already criticized the idea and it remains uncertain whether the European Commission will reference in its paper on the future of the euro zone at the end of the month.
“The task force is making good progress but it is purely a technical exercise. There are a wider set of issues in thinking about the potential role of these instruments in the wider European architecture,” said Lane.
“The European Commission paper and the views of various national authorities will evaluate this idea in the context of every other idea about the future of the euro zone. I hope it will be a helpful ingredient for the European system to think about how to make the euro area more robust in the future.”

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*

‘risks to euro zone economy still not balanced’ ‘risks to euro zone economy still not balanced’

 



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*

‘risks to euro zone economy still not balanced’ ‘risks to euro zone economy still not balanced’

 



Arab Today, arab today Modern colorful bedroom renovation

GMT 11:23 2017 Thursday ,21 December

Modern colorful bedroom renovation
Arab Today, arab today For the Variety of Interior Design Styles

GMT 11:14 2017 Tuesday ,19 December

For the Variety of Interior Design Styles

GMT 14:21 2014 Tuesday ,27 May

Glacier Ribbon Ceiling Feature by Lumicor

GMT 01:38 2018 Wednesday ,24 January

Dair sewerage network project completed

GMT 18:09 2017 Tuesday ,24 January

Back to the future as Federer storms into semis

GMT 20:14 2017 Thursday ,20 April

Pence tours Southeast Asia's largest mosque

GMT 10:56 2016 Monday ,12 December

India's cricket team hail 'sweetest' win

GMT 13:32 2017 Wednesday ,08 February

'Ghost skier' leads Winter Olympic Games data revolution

GMT 13:22 2017 Thursday ,09 March

Oman Air will stop flying to Beirut

GMT 14:16 2016 Wednesday ,10 August

The Big Heart Foundation funds primary care clinic

GMT 11:44 2017 Saturday ,11 February

Dubai attracted 14.9 million overnight visitors

GMT 14:06 2016 Monday ,26 December

Full moon party defies Thai troubles

GMT 08:40 2017 Thursday ,20 April

Corruption row threatens Brazil's economic reforms

GMT 21:42 2017 Monday ,25 September

87th Saudi National Day celebration takes center stage

GMT 13:17 2017 Saturday ,07 January

Cities vie to hop on super-speedy hyperloop rail

GMT 13:48 2016 Friday ,23 December

DEWA inaugurates 400/132kV substation
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