Unlike Trichet, he is looking past the present energy and tax-linked inflation and focusing on the medium-term, which is clearly disinflationary.
He’s setting the stage for a cut, it sounds like to me.
- Tightening of credit standards by banks slowed after LTRO
- Demand for credit remain subdued on weak economic activity in Q1
- LTRO will have positive impact on loans when demand recovers; LTRO has not yet shown full impact
