No sign of required change in banker behavior, says central banker Stark. The casino is still open, he says.
Stark also says that interest rates left too low for too long can lead to disincentives.
The sovereign debt crisis has slowed the ECB’s exit strategy but has not ended it, he says.
Inflation in emerging markets is a serious problem, he adds.
The ECB’s inflation assessment has not changed over the medium-term; short-term inflation pressures in the Euro area is mainly due to energy prices. The ECB is very vigilant on inflation., the VP of the managing board says. The ECB will do all that is needed to ensure price stability.
Like Weber yesterday, Stark is far from hitting the inflation panic button…
Stark says the increase in inflation is not an alarm signal per se.
On the ECB’s bond buying, Stark says it is a toll of monetary policy transmission, not extending credit to governments.
