- main challenge is low, declining inflation
- financial economy may be heading toward bad equilibrium that would threaten economic recovery
- sees risk of “perverse feedback loop” of low inflation, rising real rates, capital inflows and stronger euro
- ECB ready to act “should downside risk” materialize
- uncertaintities remain but eurosytem is flexible
The governing council member back on the wires
Concerns over stronger euro ? let’s see what else they can do then
EURUSD on session lows at 1.3593
Add:
- France “too slow” with reforms
- southern Europe reforms starting to pay off
