ECB’s Luc Coene on Bloomberg:
- Strong euro is hampering recovery
- Strong euro is decreasing competitiveness
- Low April inflation number might cause the ECB to act in May
- ECB rate cut if any should include deposit rate
- April inflation number a ‘very important development’
- Low inflation is mainly demand driven
- We underestimated structural side of weak HICP (inflation)
- Debate focused on cut in main refi rate and deposit rate
Those are along the lines of other comments we’ve heard from the ECB but the focus on the April inflation numbers (due April 30) is new. Nowotny said yesterday the ECB won’t act until June, at the earliest.
