Noyer has been speaking in Japan,
- he’s talked about how not taking central bank independence for granted,
- that central banks have dealt with the crisis so far in an independent capacity
- and that CB interventions have largely succeeded in avoiding deflation
- He doesn’t see, in the present situation, any reason for concern that the balance sheet expansion of major CBs is inflationary
- Many tools available to absorb liquidity if necessary
- Inflation expectations have remained well-anchored
- Purchases of govmt debt in secondary mkt are allowed for in treaty
- Fiscal consolidation must continue in Euro area
- Fiscal uncertainties must be eliminated in other nations such as Japan and the US
