He’s off again and still in London jabbering on, though I’m sure he said inflation below 2% in 2015 yesterday?
- No imminent deflationary pressure from periphery
- If ECB cuts key rate then deposit rate should be cut
- Negative deposit rate should be treated with great care
- Chance that low inflation and strong Euro will “self correct” without need for action
- Cites German wage increases as one factor to consider
All in all nothing really different from yesterday
Adds
- It’s easier for the ECB to fight inflation than deflation
