ECB's Mersch: Asset prices are currently at very elevated levels

Mersch warns on asset prices

The ECB's Mersch says asset prices are currently at 'very elevated' levels and the risk of a correction is increasing. He said it's preferable for monetary policy to incorporate financial stability concerns into deliberations.

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• There may be a significant gap between what households perceive to be the increase in their cost of living and what is measured by the HICP
• Incorporating owner-occupied housing in the reference rate for inflation for monetary policy would provide a clearer signal for mon pol to lean against housing price booms